The United States’ stock market indexes are hitting new highs. This is primarily due to a market sugar-high induced by the Federal Reserve keeping interest rates at almost zero and injecting trillions of printed dollars into the American economy. However, Americans are not placing enough importance as to what is happening in Greece. This could be the black swan that destroys your retirement portfolio; for Greece is about to possibly be kicked out of the Eurozone, and that will have a devastating on American financial markets. Sugar-highs don’t last forever.
Zero Hedge reports today:
Cited by Reuters, he (Eurogroup President Jeroen Dijsselbloem) said that Greek voters’ expectations of their new government were “a mile high.” Dutch finance minister Dijsselbloem was asked whether a plan to resolve Athens’ financial problems would be achieved on Monday. He replied, in a remark aired on Dutch television: “I’m really still very pessimistic about that now.
There is a political component to all of this as well. When Greece is booted from the common euro currency, Russia is willing and waiting to provide financial assistance to Greece and pull the country into Russian President Putin’s Eurasian Economic Union. This will drive a stake through the heart of NATO and will significantly increase the chances of the Western Alliance falling apart as France, Spain, Italy, and others are looking for monetary help as well due to their appalling national debts brought on by years of out-of-control spending.
In other words, if Greece leaves the Eurozone, all Hell is going to break loose. I’m not saying sell all your stocks. What I am saying is that if most of your money is in stocks, sell some.
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Take some profits; sit back and wait. I guarantee you will have a time to buy stocks lower at some time in the future if you are patient. There is too much risk in the world for equities to stay this high for the near future.
Ma, there’s a storm a comin…
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