I think there are various signs that the US economy seems to be growing. I remain concerned that Quantitative Easing II, the program initiated by the Fed to purchase bonds, is injecting a great deal of money into financial markets and elevating equity prices artificially.
Long-term, this loose money policy seems to be benefiting the price of various securities rather industrial activity.
Overall, I think markets have correctly anticipated the moderate recovery and have already priced this into equities.
The rise in energy and food prices could cause trouble in terms of consumer spending. Perhaps markets will correct around mid year or sooner. Events in Egypt and the Middle East, the European sovereign debt crisis, and the overheating of the Chinese economy might add more troubles.
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