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The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
TheStreet) -- Recent news regarding a number of key market factors has been generally positive and our main concerns are beginning to lift.
Federal Reserve's QE2 program ended without any disturbance in bond yields.
2. Corporate earnings and guidance on future earnings from corporate leaders is better than expected, thus far.
3. The economic soft spot appears to be dissipating as Japan, the world's third largest economy, comes back online.
4. While a deal is not yet in hand, we have seen increased clarity regarding the debt ceiling debate around a $1.5 to $2.5 trillion package of spending cuts.
5. A breakthrough on the Greek debt problems in Europe has taken place with a second rescue package.
The changing environment may inspire investors to re-engage the markets and reduce defensive positions. The
S&P 500 posted a gain of 2.2% last week, reversing the prior week's losses. A further rally may be in store for stocks as the headwinds fade and happy days return with growth and employment picking up in the second half of the year.
It seems the market may be looking to the 1950s for inspiration. A potential path for stocks in the second half of the year may be that they continue to follow the path of 1951.