All Hell Breaks Loose in the Eurozone
Riots in the Middle East… The death of Osama bin Laden… A triple tragedy in Japan… Although significant, none of these events dominated the headlines or shaped investors’ attitudes more than the debt crisis in Europe.
To put it simply, all hell broke loose in 2011 in the eurozone.
If you want graphic proof, look no further than the yield on European government bonds.
[ad#Google Adsense 336×280-IA]Of course, I’m not asking you to cry for the eurozone. Heck no.
Back in June, I gave you fair warning, saying, “If you own any euros or European bank stocks, take this as your cue to stampede for the exits, stat!”
Sure enough, the euro has plummeted 10% since that time, which is a big move in the currency market.
As Desmond Lachman of the American Enterprise Institute said, “More disconcerting yet… a crisis that had embroiled the smaller countries like Greece, Ireland and Portugal, started knocking on the door of Italy and Spain, which is now calling the very survival of the euro into question.”
I couldn’t agree more.
And 2012 could be the year the euro dies.
Ahead of the tape,
Louis Basenese[ad#jack p.s.]
Source: Wall Street Daily