Concerns over Greece a load of bull
by Peter Switzer
The Dow had its worst fall in months after debt ratings on Greece and Portugal were downgraded.
This is such bullsh-t and is typical of the day-to-day market traders that exploit bad news to make money.
Long-term traders should take these days as buying opportunities. Greece and Portugal are nothing economies, which have little economic consequence on the growth of the world or the US economic recovery.
Good for growth
The big controversy came as Standard & Poor's downgraded Greek debt to junk bond status because the Greeks don’t look like they will accept fiscal tightening to repair their finances. But it is not all bad news.
In fact, these dramas actually weaken the euro, which will be good for Eurozone economic growth.
The real news today was that the German Finance Minister says the European Union won’t let Greece down.
More important news was Ford which beat earnings expectations but sales weren’t great.
However, DuPont doubled its profit and raised its forecast, and 3M outperformed on both earnings and outlook.
There could also be some concerns that the better than expected US economic recovery could mean the Fed will start inferring that rates could rise earlier than expected. The Fed meets for the next two days and a statement results.
Personally, I don’t think the Fed wants to spook the market just yet.
I think there are some concerns out there but Greece and Portugal are lower order ones. I suggest you learn from the Greeks and Portuguese and don’t get too stressed about their debt plight.
One thing is for sure, apart from their screaming in the streets about the possible reforms they will have to deal with, they’re still sleeping well at night!
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Published on: Wednesday, April 28, 2010blog comments powered by Disqus