April, 2013 (Chinavestor) We have turned conservative since last November and have to admit that we did not foresee the winter and spring rallies that have propelled the Dow Jones Industrial Average (INDEXDJX:.DJI) and the S&P 500 to reach record highs in March 2013. There is nothing wrong with being conservative at a time when uncertainty is on the rise. We may have missed out on the latest upswing but that doesn’t alter our assessment of the current situation. We continue to believe that stock prices are reflecting an overly optimistic market sentiment and prices have to come back despite improving micro and macro economic news. Let’s just take a quick look at key indexes from China and the U.S.