Thankfully the situation in Europe seems to be gliding in for a much softer landing then many had anticipated. The situation that the European Union has with some of its member nations debt levels and its banks have cleared up a bit in the last five weeks or so. Things are starting to look a lot better in Europe now. To their credit European leaders have taken the debt and solvency issues that some member countries have seriously and they have become proactive. I can now see a spring where things go well with Greece, Italy, Spain, etc. and the European Union is able to successfully strengthen their economy and banking system.
With unemployment improving, China in for a soft landing, and the EU getting their act together the market is looking really good right now. However, there is one major storm building on the horizon. Iran and its nuclear program may very well cause a major international incident. I have seen a ton of chatter in the news lately about Israel and/or the United States striking Iran to interrupt their nuclear ambitions. Any air strikes or naval conflict in Iran or the Persian Gulf would cause a sizable market pull back. I am going to cautiously await this pull back because I believe that this conflict has to happen this spring for a number of reasons. Once the market pulls back I think that it will be a great buying opportunity. This is also an opportunity to buy oil stocks like Exxon and Chevron before the strike because world oil production will be disrupted when this happens obviously sending oil prices much higher for the short term.
0 comments:
Post a Comment