By D. Scott Peterson
My weekly talking points are snippets of ideas that are pertinent to today’s markets. They come from my readings, American history background, and from 30 years’ experience trading and investing in the American Capital Markets. They are designed to help you improve your investing results and get beyond the flood of information (we call this noise) from the media, most of which are counterproductive. Review these periodically, they will improve your investment success.
1. Discussions in the news and financial media this week are likely to focus on Greece.
2. Greece has been borrowing money from the European Union for years to finance their huge government deficit.
3. The European Union, led by Germany, had insisted on austerity, composed of sharply increased taxes and deep spending cuts.
4. In exchange for further loans, the E.U. is insisting on more of this approach and other reforms in Greek society, like selling government assets.
5. Greece has resisted this and demanded more time and reductions in imposed austerity.
6. The crisis has come to a head where Greece is faced with a choice of defaulting on its loans or more European Union imposed austerity.
7. The financial markets are concerned that a Greek default carries unknown risks that could spread throughout the European financial system and maybe even globally.
8. So the markets will be focused on this situation this week and could be volatile as a result.
9. The odds are that the drama will be resolved, or at least the day of reckoning postponed.
10. Still, you never know with these international financial affairs. While unlikely, they have developed into serious worldwide financial shocks in the past.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations of any particular security, strategy or investment product for any individuals. Information contained herein has been obtained from sources believed to be reliable but not guaranteed. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.