Greece Continues Shenanigans. Stocks Plunge
By: Tim McPartland,
Leave it to Greece to find a way to baffle global markets and when they decided they needed anationwide referendum to determine the countries financial path forward another shenanigan was contrived.
It has been obvious to us for a long, long time that Greece had no viable way out of their economic predicament but we didn’t ever expect them to call a referendum–especially at the last minute, but they will do what they do and at this point in time we are thinking that a default may be the best thing for them and the world.
How will it affect us tomorrow and what can/will we do about it? Like everyone else we will take a knock on common stocks and REIT’s tomorrow and there is a liklihood, that even though the 10 year treasury yield is down 8-10 basis points tonight, that the downdraft could bleed over into preferred stocks and exchange traded debt. We will do nothing, but watch. We CAUTION investors that taking action based upon a 1 day surprise and corresponding market bloodbath is likely a grave error. While the markets are down steeply tonight and may open that way and get worse by midday, they may also pivot and turn higher when markets decide that we will are moving toward a resolution. The point is that there is nothing you can reasonably do at this point in time to cushion a market fall. Let the chips fall where they may tomorrow (Monday) and then we will have an opportunity to look around in the days ahead and see if there are bargains being made or if they will become even better bargains next week.