Here is the key section from yesterday’s commentary:
“There is still decent odds of the European situation being contained allowing the US market to press higher in the future. Unfortunately every day that European bond rates escalate only decreases those odds. That march higher for European bond rates needs to stop soon or our markets will stampede lower.”
And yes, Thursday was another day where rates flirted with scary levels. That was most evident when the Spanish bond auction went poorly with rates tipping 7%. Having Italy at that level was bad enough. Now we have a 2nd large country like Spain in that same troubling territory. No wonder stocks tanked.
The above action has increased the odds of an ugly outcome in Europe and subsequent damage in the States. I am still holding out some hope that this can be resolved in a positive fashion. Unfortunately that hope is diminishing on a daily basis. |
发表于 2011-11-17 23:49
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