At one point in my life, I had to fly to Europe for business almost every month. It was particularly annoying when I had to do business during the months of July and August, because the Europeans were maniacal about "going on Holiday." Business would just stop! Nothing was more important than Holiday!
So far in July, the U.S. stock market has done well, because the maniacal Europeans are off enjoying their Holiday. As a result, we're getting very little bad news from there. The only ongoing news from Europe are bond yields from the 24/7/365 bond market. The U.S. stock market dipped Friday on news that the interest rate paid on new bonds issued by Spain crossed the critical 7% level, which it has done before.
I suspect our stock market will continue to rise gently through next month, but with sudden scary dips. One might be this Wednesday, when the European Central Bank (ECB) will stop using Greek bonds as collateral. It seems the Greeks have not been cutting entitlements and raising taxes as they promised. This assures us of more drama in the near future.
In the meantime . . . enjoy THEIR Holiday !
Actually, you should also enjoy YOUR vacation -- whenever you take it!
So far in July, the U.S. stock market has done well, because the maniacal Europeans are off enjoying their Holiday. As a result, we're getting very little bad news from there. The only ongoing news from Europe are bond yields from the 24/7/365 bond market. The U.S. stock market dipped Friday on news that the interest rate paid on new bonds issued by Spain crossed the critical 7% level, which it has done before.
I suspect our stock market will continue to rise gently through next month, but with sudden scary dips. One might be this Wednesday, when the European Central Bank (ECB) will stop using Greek bonds as collateral. It seems the Greeks have not been cutting entitlements and raising taxes as they promised. This assures us of more drama in the near future.
In the meantime . . . enjoy THEIR Holiday !
Actually, you should also enjoy YOUR vacation -- whenever you take it!
