Sorry I am a bit busy this Wednesday morning so I have to be brief. Also it is Ash Wednesday, the start of Lent, and hopefully for some of us, a time of reflection, prayer and sacrifice that will help us grow.
Yesterday European “leaders” supposedly came up with a solution to (extension to) the Greek debt problem. Initially markets reacted positively then reversed. If we needed a big piece of news to lift the indices this wasn’t going to be it – at least not yesterday. A couple of the people whose opinion I respect believe this was all much ado about nothing. Personally, I think that just admitting the truth, allowing partial default and staying in the EMU would be the best option as the math says, according to analysts, that this debt will never be paid off.
What did happen was a jolt to the commodities markets. Oil, gold, some food commodities, gasoline and others shot up between 1-3% – with the Iran situation (War – every political leader’s chosen poor economy bailout device) and the prospect that now Europe could become a full-blown money printer in name and in deed, excited markets for “stuff.”
A quick check of the news this AM also showed me that good earnings reports are getting rewarded by US markets and bad reports are still getting punished. So that part hasn’t changed much since the Euro news was announced (I know it’s only been a day but that’s a long time for many people in this market – glued to their quote screens).
As of this AM, weak economic reports are coming out of Europe so things could go anywhere. Personally I am still doing the same things – owning gold & silver, 4 fundamental stock positions (meaning I likely won’t sell) and a slew of other trading positions with risk management stop-loss targets in place.
Good luck out there, God bless your efforts:) – and have a plan in place!
At the time of this writing, I or my clients own the following investments mentioned in this column: Gold, Silver.
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