May is the month for mother's day so first and foremost, Happy Mom's Day!
On the financial front, May 2012 seems to be an eventful month for the Euro zone. A new French leader has been elected in power who threatens to ratify the financial treaty due to growing dissent from the population because of the austerity measures. This was followed by Greece difficulty in forming a coalition. Even Bank of England is keeping interest rates to their near zero range.
One thing financial markets dislike is uncertainty. Rule of thumb is that uncertainty carries risk and with increased risk, a higher premium is required to take on more of it. With the road ahead unclear, and the summer holidays approaching, believe most would look towards taking their bets off the table.
This reminds me of a recent term that has attracted a lot of hype, "known unknowns". These known ......