Monday, June 29, 2015

Will distance from Greece save U.S. markets? NO!

The definition of 'safe' within a highly interconnected global economy and financial system is a relative term defined by capital flows and time. The eurozone crisis, currently loosely understood as Greek problem, could trigger false moves by sending global stock markets lower and global bonds higher until the fall transition. These moves should reverse, rather unexpectedly, as business cycle transitions from prosperity to liquidity in 2015.

Business Cycle
Distance from Greece won't help or hurt the U.S. markets until TIME is right. Failing confidence in global leadership to manage the business cycle, an outcome predetermined by history, will first help U.S. markets, then hurt them.

Headline: Will distance from Greece save U.S. markets?

They say the only insulator against a magnetic force is distance. So is the United States far enough away from the pull of overseas financial calamity to remain safe?

Greece – on the cusp of default and a banking crisis - is pretty far away. China, where stocks have dropped more than 20% in weeks despite central bank rate cuts, is even more distant. Puerto Rico is just offshore, but the reality of its heaving debt load has been with us for so long that a leader calling them “not payable” doesn’t cut too close.



Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.