This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Six Key Stock Market Questions for the Rest of the Year

NEW YORK ( TheStreet) -- With 2012 nearly half over, the following list, though not comprehensive, highlights a few questions that we believe many investors are pondering for 2012's back half.

Can European Leaders Save the Eurozone?

There's no silver bullet to cure all that ails the eurozone. Yet to us, one key fact has been clear as the situation has unfolded over the past three-plus years: The political parties may change, but leaders remain resolved to preserve the euro, at least for now.

They continue to muster the political will (albeit often at the last second) to compromise, create unprecedented support mechanisms and buy the monetary union more time.

Although this step-by-step approach can seem tedious, in our view, it's likely the appropriate course of action. What the eurozone's periphery needs most are reforms aimed at increasing competitiveness. That will take time, which the dithering continues to buy for those nations.

Is Spain (and/or Italy) the Next Greece?

Following Greece's less-chaotic-than-expected election, focus returned to Spain and Italy, the only PIIGS still accessing public debt markets. No doubt, both countries have myriad issues to work through -- including reining in spending to meet fiscal deficit targets and reforming their economies.

But, the countries have several distinct differences from Greece. Both still appear able to cover debt interest payments with tax revenues. What's more, Greece has shed roughly a quarter of its GDP during its five-year recession, which continues.

Although Spain and Italy may have seen contraction in recent quarters, the scale and duration are nowhere near Greece.

Likewise, although sovereign yields have risen in recent weeks, both countries have been able to issue debt via primary markets thus far. And they were able to take advantage of lower yields earlier this year (particularly Spain), meeting a large chunk of 2012 funding needs.

Furthermore, both have made more progress than Greece in implementing economic reforms and public-sector cuts, though both have a way to go.

Will the Chinese Economy Reaccelerate?

As we've detailed before, economic growth during Chinese leadership transition years (like 2012) has historically outpaced nonelection years as the communist government tries to boost growth to avoid social unrest during the changeover.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs