In August 2011, all the world stock indices declined heavily and it was said that the Europeon debt crisis was the reason for the fall. But from november most of indices rallied and some index even made a new all time high.
Is the crisis over? Are the fundamentals of the other Economies are stronger to warrant a rally? The answer is no. The Europeon debt crisis is not over. It is discounted by the market in the short term. But it is not over. It will once taunt the market.
The markets are likely to cut the last six months low in coming months. The recent rally is really a bear market rally. It is likely to be followed by big decline in another three to four months.
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