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.

Greece On Spot Again

Pay close attention to the next three days when left politician side of Greece will be struggling to form a new Government after the center-right failed to form a coalition last Sunday. Important to remember that the left side is opposed to austerity (as the new France President also is) and next days can be decisive to determine if Greece will or will not continue being part of the Euro Zone. Take care of your portfolio as impacts are already perceived.

The impact of Francois Hollande as president of France

With the victory of Francois Hollande as president of France, the austerity plan designed by Angela Merkel and supported by Nicolas Sarkozy is at risk. Hollande considers that the plan cannot be something inevitable and that without growth there will be no Europe economy recover. Although Merkel agrees with the need of growth, discussions now are around how much Government debt should be involved in those growth needs.
The impact for us is more instability in Europe markets and consequently in Asian and EEUU markets due to their worries in Europe economy. Give special attention this week to Hollande visit to Germany, the talking between Merkel and Hollande and market reaction. Good investments!!!!

Pay attention to the markets today!!!!!

Dear followers, pay attention to the market today!!!! It is set to fall today and next ones till the end of this week and redefine market levels, especially in USA and Europe. Dow Jones future has already drastically declined (around 100 points). Be connected to its opening and to news and movements during the day and week. Be vigilant!!!!

Greece Parliament makes its homework but the bailout package is still under discussion!!

Greece Parliament was able to approve, late last night, the austerity package that includes, but is not limited to, thousands of Government jobs cut as well as cuts in minimum wages, pension funds and health care. Although that was a mandatory requirement for them to have approved prior to start receiving the more than USD 170BB rescue package loan, the Euro zone leaders are again discussing the details involving the loans amount and sustainability, which clearly does not put an end in the Greece bailout matters and show Euro countries lack of full consensus so far. Keep an eye on this discussion!!

USA banks are cheap and delivered great results

Have you ever considered USA financial institutes to invest in? Maybe this is a good time to think about it and see how it fits to your portfolio. They are cheap now and have presented very good 4th quarter results, most of them above analysts’ expectations. Important to remember that they were also into big trouble during 2011, especially with the foreclosures, so it is mandatory you make a very good analysis on their financial books/results to understand their debt level, actions to get more profitable and to overcome exposure foreclosures processes and claims. You need to understand internal actions (like bonuses and staffs reduction) as well as external ones, but I am pretty sure you can find great picks if they fit to your investor profile, portfolio and risk tolerance.