While markets broke to the upside this week, don’t be fooled by the unwarranted optimism. With Greek and Italian PMs out, the heightened political discord is putting the Eurozone at serious financial risk. Seeing as Italy’s debt burden dwarfs Greece’s debt, a financial meltdown in Italy could create larger negative shockwaves extending not only throughout Europe, but into American and …
Is This the Start Of Another Downward Spiral For ETFs?
[Chart courtesy of MarketWatch.com] It looks like the deep rooted problems of the Eurozone finally registered with investors as markets tanked after two consecutive days of seemingly unjustified exuberance. The S&P 500 took a 3.67% dive, while major European indices also took a sizeable hit. Nevertheless, Asia somehow finished on the positive side. The dollar noticeably strengthened against the Euro …
The Real Scoop on Europe: In Pictures and Words
Markets reacted with great exuberance to EU leaders finally come up with some sort of debt crisis resolution. Although this provides some temporary relief, the long-term view still looks dour. If you seem unconvinced, take a look at this frightening interconnected web of European debt exposure. It’s clear that the current Eurozone package has only pushed out liabilities for another …
Saying It Like It is: A Trader’s Perspective
Hat tip goes to reader Laren for the link to the video below. It features an interview by BBC with an independent trader that left some of their staff speechless. However, a lot of what this trader says has merit. Even if you don’t agree with his analysis or suggestions how to benefit from a down market, you need to …
Stumbling Into October—Major Market ETFs Retreat Sharply
[Chart courtesy of MarketWatch.com] The major market ETFs took it on the chin today in what appears to be a continuation of last week’s selloff. The S&P 500 ended up closing below its trading band that I discussed last Tuesday. I featured the S&P 500 chart below, which now clearly shows the downside breakout: Today’s weakness pushed stocks to their …
The Big Picture: A Video Interview With Gary Shilling
Hat tip goes to Mish at Global Economics for the link to an interesting video interview with economist Gary Shilling. Gary discusses deleveraging and the dangers of ongoing deflation, along with what he expect to happen in the markets. I agree with his findings and views, especially my recurring theme of downside risk being far greater than upside potential. Take …