There has been a lot of negative data hitting the equity markets lately. And this data is not to be minimized.
However, some positive data has been reported lately as well, and it should not be completely ignored. Jobless claims today were better than expected. Retail numbers were mixed, but better than some had expected. Even Spain and France have had good bond auctions in the past week.
Valuations also seem compelling with the S&P 500 trading at 11.5x 2010 earnings. That appears cheap even with reduced expectations for economic growth. And, interest rates and inflation remain low.
Certainly the negatives have not disappeared. But it is always important to keep some positive data points in sight.
