While stocks have recently enjoyed a brisk climb well above beginning of the year numbers, it now seems that due to many factors, a summer pullback is beginning to rear its ugly head.  Stocks have begun to plummet on job loss and housing data and commodities that usually do well when stocks slump, like gold and oil, are also slouching a bit.  The notion of a summer pullback is leaving investors in a sticky situation, and often asking tough questions without any real clear answers.

Pulling the trigger on new investments gets tougher and tougher with each passing week.  Those that see inflation on the horizon are chomping at the bit for precious metals prices to sink lower and lower this summer.  In a situation where PM’s are cheap, people might be keen on loading up while the prices are still low and hanging on to their metals as a hedge against inflation.  Basically, people in these circles are betting on inflation.

Other investors are waiting in the wings for the stock markets to cool off a bit from their post-March run-ups.  With many blue chips set to really sink this summer, unless new economic data surfaces that would suggest otherwise, investors are holding back right now and looking for better, more target-rich investing environments.  Opinions are mixed, but right now, with gold around $925 an ounce and silver comfortably below the $14 mark, it’s not a bad time to pull the trigger if betting against inflation is the name of the game.

The housing markets are still slowly sinking as well, leaving many would-be home buyers and first time real estate investors wondering if we’ve even come close to a bottom yet.  Interest rates are still relatively low so many investors are seeing a real opportunity to get into real estate at the present moment.  The interest rates and low prices have combined to create a real siren song of an irresistible investment opportunity for those who believe that the housing market is through with its shakeup.

The public’s confidence in the Obama Administration’s efforts to bring about an economic comeback is beginning to fade as well, creating a negative atmosphere in many investment circles.  The public has given the Obama Administration nearly six months to restructure and reset the course of the US economy.  Many believe that he is not doing enough to completely gut and rebuild the Wall Street monster and the framework of many financial institutions that helped get the globe into this most recent economic recession.  Without real change, as many investors had hoped for and had been banking on, the US economy will likely never be able to fully recover in the most effective, efficient, and change-inducing way possible.

No matter which way you slice it, it’s a tough call.  The markets are going through a real shake-up, one that’s lasted over a year.  Traditional models and theories haven’t really held their ground over the past year, so it’s very hard to tell what direction the markets are going next.  Being supersensitive to the world economic health as well as to outside forces like geo-political events and other seemingly unrelated catalysts for change, the markets are primed for one thing: uncertainty.