Stay Risk Off - Greece failed again to form a coalition Government

Because Greece failed again to form a coalition Government, they are going to have elections again next month, on June 17th, but most analysts and investors (including myself) believe that now than ever, they are closer to leave Eurozone and that the results on next month elections are going to be pretty much similar to previous one. Important to take a time to think what that would mean to Europe markets and countries, and of course consequently, to your financial investments and health. Even though Angela Merkel and new France President have both said they agree they want to keep Greece in the euro zone, the European Central Bank has already stopped providing liquidity to some Greek banks and millions of euros have already flew from Greek banks as well, Greece short-term foreign currency has been downgraded to “C” while long-term foreign and local currency has been downgraded to “CCC”. Country Ceiling has also been revised, which complicates much more their economic situation. Pay attention and take a risk off attitude for your financials safety.

Are China and Japan buying Europe and United States?

They say NO. They say they have no intention and no means, but the fact is that in 2011, China investments in Europe increased by two times and are over US$ 6.0BB. Both China and Japan are buying giant companies in Europe and USA, taking advantage of the great liquidity Asian markets have, differently from the other two Regions that are struggling with a terrible economic crisis. There are groups of Asian investors coordinating trips to EUA and Europe to search and close good business. That’s maybe an opportunity for you too, as you can make your homework and study which companies are receiving Asian investments and how / if they would fit to your portfolio. Do not forget that it is important to make the whole study and carefully analyze financial results prior to make any decision. All of us know that China and Japan are willing to support Europe and USA and to continue having government debt of those two Region, even increasing the amount already owned, but so far no concrete action was defined on this direction while the purchase of companies is a reality rapidly increasing since last year. Good search!!!

Portugal effect in your Portfolio

After a great January results in stock markets we feel it is a good time for you to review your portfolio and, in case you have European positions, to take a carefully look on them and ensure you are comfortable with the risks and financials involved in them. At this time you probably have recovered some of the losses involved in European crisis, so if you need to rearrange some of your investments you can make this decision without acknowledge losses or at least which much less exposure then if you were in the middle of second semester of 2011. From now on we understand that Portugal we play a more important role in the already tough pressure on European financial crisis due to its high debt level and its difficulty to get new loans with banks that are running to get financial insurance and be protected against similar scenarios they lived with Greece.