Market Tumbling on Greek Protests

The market has taken a big hit since my last post. The main catalyst seems to be Greek anti-austerity protests turning violent. This has led to a large drop in the Euro over the last 2 hours. You are seeing the risk-off trade with money moving out of risky assets like stocks into safe instruments like treasuries. Last year on the day of the flash crash we were seeing similar violent protests in Athens.

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

2 Responses to Market Tumbling on Greek Protests

  1. BP says:

    Market has been on this illusion that things have gotten better, after fed’s intervention. In reality, with all the money thrown at this issue, all we did was to transfer the debt from one bucket to the next. I think it’s time to feel the pain and address the issues. It’s going to be long road to recovery.

    • austextrader says:

      I think it is hard to argue that the state of US corporations has not improved relative to 2 years ago. At the end of the day the market is pricing the financial prospects of companies that are listed, not the economy. Secondly you are taking a very US centric view, whereas most companies are no longer just doing business in the US. Therefore I think the rally was not all based on an illusion. We have a higher risk to earnings now and the market has appropriately sold off. I think we will need to see a strong global slowdown to see a full fledged bear market.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s