AUTHOR: TOWNE SCHERER.COM 07/06/2015: Towne Scherer Private Wealth Management BLOG: Greece’s slipping financial situation caused the world markets to plunge, with Greece closing its banks for the week and imposing restrictions on money withdrawals and banking transactions, to keep its financial system from collapsing, according to a report by Fox News. Additionally, USA Today reported thaton the Greek debt crisis the Dow Jones dropped 350 points to its lowest level of 2015, with investors waiting for the final word on the workout. On the other hand, The Wall Street Journal (WSJ), said that “Greece rattles but doesn’t panic markets,” pointing out that Greece is no longer so enmeshed in the region’s financial system. The WSJarticlealso stated that “the relatively mild reaction on Monday means there is room for further declines,” and that “It’s going to be a volatile week in the market.” Will this effect interest rates, you ask? The WSJ also reported that “a wave of financial turbulence overseas (AKA Greece) could delay the Federal Reserve’s plans to raise short-term interest rates in the months ahead, (with an increase occurring) only if it ends up knocking the U.S. economy off track.” But inquiring minds want to know if the Fed will actually increase interest rates? Coincidentally, a CNN article suggested in March that “any rate hike will almost certainly increase volatility (with) markets overdue for a correction, which hasn’t happened since 2011.” Further, a U.S. World and News Report (USWANR) article recently stated that “an interest rate liftoff will occur in September.” Additionally, USWANR quoted Phil Orlando, chief equity market strategist at Federated Investors as saying, “that time frame (a September rate increase) is likely a ‘slam dunk’ based on the fact that Federal Reserve Chair Janet Yellen has opted to skip the Federal Reserve Bank of Kansas City’s Economic Policy Symposium, which is scheduled only a few weeks ahead of the FOMC’s September meeting. In other slippery news, oil ends the first half of the year with more than a 11% gain, with Yahoo Finance reporting that there is a new oil bull market in sight as Brazil and Iraq cut output targets. And, in closing, let us consider John McCarthy’s quote, “When I see a slippery slope, my instinct is to build a terrace.” Therefore, how are your porticos looking these days? Breaking News from Reuters: Greece defaults on its payments to the IMF. Remember: “Follow the Investment Trends” With Wave and Wind Only available through Towne Scherer Private Wealth Management The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
07/06/2015: Greece Slipping, DOW’s Lowest Level, Interest Rate Slam Dunk, Oil Bull? Greece Defaults!
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July 02, 2015