Date: June 22, 2015

More Nonsense with Greece

Just wondering aloud if a single week can go by without any talk about will Greece or won’t Greece exit from the Euro. They are already in default, and historically, they have been in default more than they have been current, yet they behave as though they are in full control. Maybe they are! You know the old adage that if you owe the bank $100,000 and can’t pay, you have a problem. If you owe the bank $100,000,000, the bank has a problem. I don’t see it that way with Greece, but clearly, bad behavior is being rewarded.

The markets are once again celebrating the “news” with a big stock market rally. And the media loves it! What they don’t see or want to discuss is how poor participation is today so far. There aren’t even two winners for every loser. That shows some short-term weakness or lack of conviction. From my seat, it looks more like another short-term selling opportunity or do nothing over committing money to stocks right here and now. That time will come soon, but not now.

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Paul Schatz, President, Heritage Capital