Well, at this point I am certainly getting tired of talking about the
latest problem over in Europe. The
markets are clearly frustrated with the lack of clarity about the future, thus
they have been gyrating all over the place.
When global financial markets start trading on rumors and speculation it
only takes the slightest headline to make an impact. The validity of the rumor is not important,
but rather how many people decide to trade on it.
We must wait until June 17th for a second election to take place
in Greece before we can get a better feeling for their desire to continue using
the Euro as a currency. The possible repercussions
of going back to the Drachma are not desirable given the fact that this has
never happened before. You certainly
would see an immediate devaluation of the new currency and lots of nervous
people standing in lines at the banks.
Politicians like to work well under deadlines and we will have to see if
they can come up with something of substance this time around.
Until we have more clarity about what may develop in Greece please stay
safe out there and don’t be afraid to ask questions from your financial
professional.
I am always here to help and can be reached at 239-288-6542 for further
questions.
Past performance is no guarantee of future results.
Eric Marvin, CFP®, CRPC®
JPT052512-980
