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Market Update June 21, 2011
Posted on | June 21, 2011 | Comments Off
The markets have had three up days in a row following the news that Europe is near another “kick the can” bailout of the bankrupt country of Greece. Of course, the market is being driven by short term traders right now, which we want nothing to do with.
We will continue to be patient and let things shake out, sticking to our strategy as the debt crisis in Europe (and frankly the U.S.) continues to rear its ugly head. Does anyone have any rational reasons why Greece won’t eventually default? I just don’t see it. The next financial crisis will be bigger than 2008 because instead of it being about banks going under, the next crisis will be countries going under. Greece will likely be the Lehman that kicks it off.
The S&P 500 index is up three days in a row after taking a beating for several weeks. With stocks like Apple (AAPL) now underperforming the broad index, I think that the S&P bounce is just a bounce and the downtrend will continue soon.
Let’s wait and see…