Newsletter Q2 2012

As we mentioned in the last newsletter, an unsurprising correction (a 10% drop in the S&P 500 from its 2012 highs) occurred in the second quarter. The main causes of the pullback were increasing evidence of slower global economic growth and sovereign debt concerns spreading to Spain and Italy with 15 Spanish banks downgraded recently by Moody’s. Elections in France and Greece highlighted the political discord in Europe and the conflict on how to address the debt crisis – austerity and/or tax increases…