While the markets appear impervious to the disastrous situation unfolding in Greece, we certainly are not. Although it’s difficult to quantify the impact of an adverse event in Greece on U.S. markets, Greek default is a very realistic scenario that could trigger a negative ripple effect globally. As Greece is mired in talks with its bondholders over the restructuring terms …
The Rationale Behind Remaining Invested in the U.S.
In conjunction with abnormally warm winter weather across the nation, markets have followed suit. So far this month, the S&P 500 has gained 4.6% while the NASDAQ has performed even better, returning nearly 7%. Although I doubt that this current hot streak will carry on long-term, there are certainly some short-term opportunities to capitalize on some attractive equity ETFs while …
S&P Downgrades Add Further Strain on Europe
Standard and Poor’s didn’t shy away from issuing en masse downgrades to 9 countries in Europe after months of warnings. In other words, Europe is on thin ice and will have to act fast before its unified economic foundation breaks into fragmented pieces. In this week’s video, managing director of sovereign ratings at S&P, John Chambers, presents a breakdown of …
Political Affiliation and Investment Returns – Is There A Link?
With the Republican primary well under way, I’m sure you may be wondering which candidate will be able to revive the U.S. economy and push markets back into bull territory. Over the years, the debate between politics and financial growth has been contentious, questioning whether Democratic or Republican policies are more beneficial for the economy and financial markets. As we …
European Banking Crisis – ECB Action Is Not Enough
The ECB has taken drastic measures to ensure the liquidity, and probably more realistically, the solvency of the European banking system. Through long-term refinancing options, which are essentially near costless loans, the ECB has tried to kick start banks into lending mode. However, as apparent in this Financial Times analysis video, these actions have failed to inspire confidence in the …
A Rough 2011, But Will 2012 Get Any Better?
It’s been a crazy year for markets to put it mildly. Europe descended into a full blown financial crisis, the U.S. failed to make significant headway in economic growth, and Asian economies started heading south. And the sad part is that 2012 might just be much of the same. Looking back on 2011, Guardian economics editor Larry Elliot reviews the …