A Nice Opportunity if the Euro Trips
It was just a few months ago that Europe dominated market headlines, and U.S. traders would begin each day with a check on European markets. Yields on Spanish and Italian 10-year bonds inflated to the 7% area -- a level that set off alarms, because it is associated with the bailouts of Portugal and Ireland.
Then, in August, European Central Bank President Mario Draghi hinted at a massive plan that would change everything. The introduction of that plan, now known as Outright Monetary Transactions, or OMT, marked a turning point for bond yields. Spanish and Italian 10-year yields gradually slid below 6%, and then approached 5%. Bets that the eurozone would crumble began to unwind. The once-maligned currency, which was trading below $1.25 at the time, found its footing and eventually climbed to $1.37. Stocks resumed their rally, and all was well with the world again....340 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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