In our last blog we mentioned that the upcoming weeks we will know if we are in a double dip recession or not. Our US behavioral indicators was getting close to its threshold which indicates a major downturn. However, in our sample we have never seen our indicators indicate a major downturn so late in the downturn. Therefore, we believed this was a market correction. This past week we believe has proven that no double dip recession is on its way. We are not extraordinary bullish about the US. However, we do not see a double dip recession. Our agent-based indicator for the US indicates the US stock market is 20% under valued. It does not indicate when the US will gain that 20%. It could six months or several years. But the indication is that US is on a up trend albeit a slow one.
We are still bullish on India, South Korea, South Africa, and Israel.
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