MAY 2011 ERRATIC MICROCAP RALLIES (part 2)

Astoria, New York
There are various forces leading to a possible May 2011 quick rally for microcaps. FPG says that aggressive investors may be lurking as they run out of investment oppurtunities. In the last few years, gold & silver and many commodities have rallied. Silver is at least a 10 bagger as it peaked near 50.00. Oil prices continue to move higher due to war, turmoil and political instability in the African nations and Middle East. Real estate continues to be only a necessity investment rather than a speculative one. " I remember back in the old Bush days when every Joe Schmoe would gamble on real estate just like stocks. Those days are gone for the time being." While the stock market has been performing, many microcaps have been hiding. FPG suggests companies that have been pressured down recently may indeed rally as Spring comes to a full blossom. " This year, winter has lasted a little bit longer here in NY and a late season Holy was unseasonably cooler than normal. In 1996, we had the same cool and wet weather pattern into May. Maybe this kind of pattern keeps the brokers indoors and working harder. I do not really know." Another factor this year is the record low interest rate environment. People are not making interest in their banking accounts and some banks in Astoria are actually pushing their clients out of CDs and putting them in annuities. " As interest rates could be moving higher in the US to protect against inflation and a weakened dollar, a micro cap bonanza does really make sense at the present time. It could signal the end of the market as these tiny companies show their colors in the month of May" finalized FPG.