Chinu,
are you ready for a tumultuous Sunday? The Greek vote happens on Sunday and depending on who wins, Greece may announce they are leaving the Euro Sunday or Monday. If that happens, then all hell will break loose in Europe, which will most definitely tank our markets here in the US.
The current rumor is that the G20 Central Bankers are prepared to take coordinated action should that happen. I would bet that the US Fed, ECB, and other majors bankers will announce a $2-3 trillion QE effort or some other such deal to calm the markets if Greece jumps ship.
All I can say is I'm happy the way I'm invested, which is 10% stocks, 70% bonds, 20% cash, and not a dime of sovereign debt in my portfolio. I sleep like a baby, but am watching this melodrama with much interest. It's very similar to watching a slow motion train wreck. It's horrifying to watch, but you can't take your eyes off it.
"The money powers prey upon the nation in times of peace and conspire against it in times of adversity. The banking powers are more despotic than a monarchy, more insolent than autocracy, more selfish than bureaucracy. They denounce as public enemies all who question their methods or throw light upon their crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe." - Abraham Lincoln |
