A Market Story That's Bigger Than Greece
Even though it was generally anticipated that the European leaders would succumb to the political pressure and bail out Greece, the news of a second Greek bailout failed to inspire markets. If you are surprised at the tepid market reaction, then you are failing to remember one very important thing: Markets are anticipatory creatures. A 10% advance in the S&P 500 so far in 2012 is in part due to the expectation that this bailout would occur.
In true form, markets are now focusing on April, which is when Greece holds elections that will likely lead to a change in leadership. It's easy for lame-duck leaders to enter into agreements, but newly elected leaders are often invigorated by a chance to implement change. More so, many simply see this bailout as merely another round of electric shock to a dying patient. For now, disaster has been averted, and that will likely tone down volatility; but as for a huge move up, I would tone down my expectations, especially since an economic issue was revealed to the markets today that may bigger than Greece....420 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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