THE SECOND HALF

So let's take a look at the so-called second half. 

There are some expected drags on the market like the EU mess, China slowdown concerns and the US where equities for the most part were on fire for much of the first half.

That first-half US performance could cool off more than many anticipate. Many see the possible tapering of QE as a threat to a stock market that's been artificially pumped higher by easy money. 

There is also trouble in several emerging markets of late that some believe are tied to the Federal Reserve when it begins cutting back on QE. Those markets until recently provided an economic lift to many investors, especially those searching for yield.

On the other hand, cutting QE sends a signal, right or wrong, the world's largest economy is well enough to start standing on its own. That translates into more demand and more demand translates into increased use of energy and other things like basic materials that have lagged during the SM's bull run.

So what's the point. In short, look to the laggards that have been the market orphans to date. As we've written before, the bargains, if any exist, aren't usually found where everyone's looking.
____________