Greece is stomping her foot
The situation in Greece has been compared to a teenage girl stomping her foot, demanding that her parents give her back the credit card with which she just ran up a huge bill. This turmoil has helped cause our markets to be down for the second straight week. Our thought is that there is more noise than substance, with the news media making most of the noise to keep viewers watching.
Greece is only 1%
The Greek national debt is $250 billion which is only 1% of the European Union’s annual output. Most of the debt is owned by the IMF and the European Central Bank and they can print money whenever they want. This should take the worry out of a collapse of the Euro.
As the markets continue to react to Greece, we are continuing to monitor this for our clients’ portfolios.
Slack in the Jobs Report
The Jobs Report last week was so-so. The unemployment number went down but we know that is because there are less people looking for jobs. The slack in the system can be seen by the fact that the wage rate has not gone up with a lower unemployment number.
The news media is giving a lot of attention to Greece and it’s market impact. However, there is a lot more data that plays into the market volatility. We know that Janet Yellen, Chair of the Federal Reserve, is a big proponent of watching the labor markets. The Fed. also uses more than the Jobs Report in their policy making. When we look at all this data, we cannot see the Fed raising interest rates anytime soon.
Coming up this week
This week we will be watching the numbers on international trade and the weekly jobless claims. Most importantly we will we monitoring the Fed minutes as they are released in a few days.
We’d love to hear your comments and questions.
fi-Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. fi-Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
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