The enthusiasm over the lower house approval in Germany’s Parliament of the euro bailout plan lasted exactly one minute as we await the upper house. A sell on the news is the only reason I can come up with (yes vote was widely anticipated) or a bout with reality as it’s never good that we even got to this point and the problem of too much debt has not been dealt with. The ECB Vice Pres said “money and credit growth lies at the heart of most boom and bust cycles” and therefore they won’t have an “over activist” monetary policy. If only our Fed heeded that. Also of focus was the weaker than expected data out at 4am in Europe. German’s May IFO business confidence # was a touch below expectations even though it’s the 2nd highest figure since mid ’08. The May Euro Zone services and manufacturing composite index was 1 pt below estimates. US$ 3 mo LIBOR rose to .497, another fresh 10 month high.
This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client. References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers Please see disclosures here: https://ritholtzwealth.com/blog-disclosures/