Not much to say as the employment numbers dumped cold water on the equity rally. The markets, especially Apple, did show some impressive resilience on Friday, but we’re still maintaining equities are at the top end of their range. Investors and traders should, in our opinion, start preparing for a major earthquake in Europe. The politicos have let the European Debt Crisis get away from them as it is now creeping into the core countries, such as Italy. Monitor European financials closely.
Anyone that lives in an earthquake zone knows that predicting the timing of a major quake is impossible, but it is best to be prepared for one. We don’t know how it will play out in Europe, but it is certainly not moving toward a resolution anytime soon. High leverage and heavy exposure to a declining asset class are a toxic brew and that is the case with the European financial system.
Then you have the bozos in Washington playing with fire and seem to have no idea of the consequences once markets call their bluff. Good luck out there.
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