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Summary:

After the elections, Greece failed to form a new government. As the country is facing a deep recession with austerity measures, the Greek will have to vote again next month. More and more European leaders are talking about a possible exit of the country from the Eurozone, which, to us, would not be the right solution, leading Greece in a worst nightmare than the one it is into now. Spain is attacked again by speculators, while several European economies are currently in recession. Emerging markets are also affected, as growth is disappointing in China, India and Brazil.

As a result, the nervousness of international investors rose last month and stock markets tumbled nearly everywhere. Meanwhile, the U.S continue to grow thanks to the monetary policy of the FED but how long will it last? Ultimately, the global slow-down should affect the U.S., all the more as the FED does not seem quite sure to make a third round of quantitative easing this summer.

Maybe the famous quote “sell in May and go away” has never been more applicable than in 2012.