Note: This post is a follow up the the New Year post: Four Stocks for the New Year as well as the first quarter review

We’re halfway through 2009 and the markets continue to be very dynamic. After a full fledged rout in the first quarter, equity markets have rebounded sharply in the second quarter, posting the best market return since the bullish days of the late 90’s. Despite the strong performance off the March lows, equity markets still appear to have a significant amount of risk. Unemployment numbers continue to be weak, consumer spending is contracting even with upticks in income levels, and governments around the world are piling on excessive debt.