Lost in all of the global action around Israel and Gaza, Russia and Ukraine and the slow-burning Iraqi civil war, investors have already forgotten about Banco Espirito Santo. This Portuguese bank spooked global markets a week ago on concerns that it may be heading for default. Indeed, the bank did in fact declare bankruptcy this past weekend. For investors taking note of a seemingly endless bull market, that may have been a warning shot. After all, U.S. stocks stumbled on several occasions in the early years after the Great Recession of 2008, every time Europe began to wobble. Judging by… Read More
Lost in all of the global action around Israel and Gaza, Russia and Ukraine and the slow-burning Iraqi civil war, investors have already forgotten about Banco Espirito Santo. This Portuguese bank spooked global markets a week ago on concerns that it may be heading for default. Indeed, the bank did in fact declare bankruptcy this past weekend. For investors taking note of a seemingly endless bull market, that may have been a warning shot. After all, U.S. stocks stumbled on several occasions in the early years after the Great Recession of 2008, every time Europe began to wobble. Judging by recent economic data, Europe may again start to dominate the headlines, and U.S. investors need to start paying close attention again. For that matter, if your portfolio has direct exposure to Europe, it may be time to trim your positions. European stocks have been marching ever higher, but it is increasingly apparent that it was too soon for celebration. #-ad_banner-#Debt And Growth: An Unmatched Pair The entire basis for the rally in European stocks has been predicated on an expectation that a resumption of economic growth would help to bring massive debt burdens into check. Read More