Early relief that we can finally put the Greek drama behind us morphed into a European markets sell off. EU finance ministers are still holding back final approval of yet another rescue package. Greece’s commitments to get their fiscal house in order are leading to frustration with the country’s bickering politicians.
In Asia, continuing signs of the slowing China economy added to concerns. Some China Bears have been forecasting a crash, and the Shanghai and Hong Kong markets have performed poorly the past few years — peaking near 32,000 in September 2008, diving to March 2009 low of 11,500. The Hang Seng is still off by 33%, hovering around 21,000.
Is this a consolidation phase, or the beginning of the end of the bull market? I am positioned for the former, but cognizant of the potential for the latter.
More shortly . . .