Hello Folks
I continue to be 100% S-Fund, with no changes expected, even in light of the cathartic Greek crisis. On Monday June 29, Greek banks will remain closed, and “capital controls put into place”, in an apparent last-ditch effort by Greek government to prevent citizens from draining their bank accounts and to prevent a likely bank run. I reported in previous posts that a payment to the IMF is due on June 30. There is no signal that Greece can, or even really wants, to make this payment. Failure to making this payment is technically a default on the IMF loan(s).
By all indications, Greece will soon be exiting the Eurozone and will probably never be able to borrow another penny from anybody, akin to a FICA score of zero. Which, probably is best for everyone, except the Greeks.
Dow Futures are down 200 points during the evening of Sunday June 28. Monday June 29 will be a volatile day in the stock markets, but my question is “Does Greece Matter?” I discussed this in my prior May 7 post, please take a look, and reflect on whether or not Greece can really cause any damage to world markets (the opinions are wide-ranging).
I continue to be 100% S-Fund until further advised. Fasten the seat belts, this week ahead will be somewhat bumpy.
Talk to you soon….
– Bill Pritchard
