Bottom line

The big question for this week — Will the rally survive weekend second thoughts and resume? Friday’s rally in the United States was labeled a relief rally. Evidently investors have been more worried than analysts thought about the possibility of new terrorist attacks during the July fourth holiday. The underlying tensions from terrorism and possible new strikes could be sapping strength from equities, especially in the United States. There still continues to be a disconnect between the market and the economy in the post-bubble economy. Could it be that market players are irrational on the downside also, especially given the underlying uncertainties?