Friday, May 11, 2012

This Bear Looks Greek to Me

The Greek electorate effectively rejected the Eurozone bailout last weekend and, as a result, equity markets took a nosedive during the week as resurfacing Eurozone debt woes welcomed back the bears on Wall Street.  Political turbulence in Greece has sparked a wave of worry, with many fearing that the nation will have to face default unless the opposing parties agree to implement the proposed austerity measures.

Beware of bears of summer

On the domestic side, economic data releases remain mixed; the latest consumer sentiment index came in better than expected, however, the labor market remains fragile.  But next week may be more encouraging as several significant US economic reports will be forthcoming Tuesday through Thursday --- perhaps less tepid than those we've seen in the past couple of weeks.

Given the potential for better data releases in the near-term, I'm fully invested in equities in my more aggressive portfolios heading into next week.