The markets got hit today on world issues. Why today? I have no idea. The talk was about Greece and Dubai but those were issues yesterday. Why does the market care today? Greece was downgraded by S&P today but I don't understand why markets really care about a rating by some third party so much. I have mentioned Greece's problems several times. There well known. Why does the market all of a sudden care?
Anyway, the the Business Insider has an article on the top 10 countries likely to default. National sovereignty issues is being talked about more and more.
Who are the top 10?
From The Business Insider
6) Emirate of Duabai
I actually disagree some with this list. Greece, Spain, and maybe even Mexico should be included. Not to mention potentially Japan in the next three years. Either way this is starting to enter the mind of investors. Seemed obvious. Always amazed how long people are willing to ignore things.
As far as the market action. Yes it was down but we are still snugly in our trading range. Until we break 1080ish on the downside or 1013ish on the upside, there is not much going on. Just bouncing like a pinball. Financials continue to weaken though which may be a tell tell sign.
Thanks goes to Ron