Europe says “Don’t Forget about me!”

  • Posted on: 9 December 2015
  • By: admin

Europe says “Don’t Forget about me!”

After a prolonged period without many market jarring news stories, Europe has once again reminded us that all is not well across the pond. You can read the Bloomberg story at http://www.bloomberg.com/news/2013-02-03/euro-tremors-risk-market-respite-on-spain-italy-banks.html

 

Why You Should Care

For much of 2012, Europe’s woes caused a manic shift by investors from risk on to risk off, but the last 3+ months have been very quiet, some may even say too quiet. Europe continues to be a hotbed for potential danger, but European officials have done a better job of talking risk down, and basically indicating to financial markets that they will do whatever it takes to keep the Euro going. 

For equity markets, one of the potential upside drivers that we identified in our 2013 Outlook presentation, which can be viewed at http://pathlightinvestors.com/category/news-category/pathlight-investors%E2%80%99-2013-outlook-presentation, was a stabilized European economy that could return to growth by the end of 2013. We still have much work to do, but hopefully these recent rumblings won’t derail the progress.