Contributing Editors' Blog Entries

Marc To Market's picture

 

Yes, it is the holiday season.  Yes, you are unlikely to be taking action with your investments.  Yes, the morphing of what is into what will be continues uninterrupted.  

 

There were several developments over the weekend that will influence the direction of the the markets in the days ahead, with the usual caution about the impact of the thinness of conditions.  

 

First, the major focus remains the US fiscal cliff.  One of the most important ways in which the US fiscal crisis differs from those seen in Iceland, Greece, Portugal, Ireland is that it has not been triggered by a capital strike. Investors have not fled the US.  Interest rates have not trended higher.   It is not a fiscal crisis.  It is a political crisis

 

AVFMS's picture

Trailing the US, as not much else to do. EGBs firming up, but mostly because they‘re supposed to do so, as Equities end a little softer, because they have to, as well. Credit likewise. So no Risk highs under the Xmas three… All because of the US. Blue.

"Blue Christmas" (Bunds 1,38% -4; Spain 5,23% +1; Stoxx 2644 -0,6%; EUR 1,318 -40)