The market has been climbing a " wall of worry" these past weeks. It may have not advanced much in real terms. But the mere fact that it didn't collapse under the weight of rising interest rates, the war in Lebanon and sabre-rattling by the U.S. and Iran was quite a weight-lifting event.
I believe peace will slowly emerge for the Middle East. The Palestinian/Israeli conflict hit bottom by the virtual collapse of the Palestinian Authority. The annoncement over the weekend of a new unity government by the PA and the defeat of Israel in Lebanon, taken together, will force Israel to accept peaceful steps as the only path.
Also landmark legislation in California to limit grenhouse gases could and I think will launch a new eco-sustainable industrial base that could well replay the boom days of Silicon Valley's launch of the microprocessor and personal computers.
The market could advance by at least 10% by years end.
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