10 Jul 2009 Slowly, But Surely?

Equity markets continue to cool as investors consider whether the meteoric rally starting in March was overly optimistic. The S&P 500 run-up of nearly 40% from March 9^th to June 12^th is now 6.8% below its high point. The MSCI Emerging market index is 8.75% off its high, also reached on June 12^th, but that index rose 72% from its depths in March on signs of greater economic strength in developing economies. It is becoming clear that the world is emerging from the worst economic slump since WWII, but just how fast remains in question.