No replies to this topic

[slupert]

"Italy's senate approved a series of austerity measures on Friday. Investors were obviously pleased given that their 10 year bond rates continued to drop from a peak of 7.25% down to 6.45% in just two days. And this movement back from the brink = stocks up in Europe = stocks up in the US. Unfortunately that is in the past. And it will not help us navigate the market this week. That is because for every problem solved, a new one emerges. Like... • "Core" Euro nations are contemplating a breakup of the EU • Slovenian bond rates cracked 7% intraday on Friday • Spain's GDP fell to 0%. Not good with 20%+ unemployment and staggering debt load • French bond rates are steadily rising too • Italian bond rates can ratchet back up as fast as they came down. Given the whip-sawing action in Europe, I do not yet feel confident in moving away from my net neutral portfolio strategy. That's because there are landmines on either side of the equation. Meaning if you step too bullish or too bearish you could be dead meat. This is a time when "Discretion is the better part of valor""