The Euro Zone is a mess and Greece is a leading cause. Why do I care? Because the markets care. This is demonstrated by today’s negative reactions in the world markets to a strange and high risk decision by the Greek government: It is going to ask the voters to decide whether to accept austerity terms offered by the other EU governments to bail Greece out- again.
< This is when I don’t like the globalization of our economy. I don’t want my retirement investments to get hammered by bad decisions made by overspending foreign governments. It’s bad enough that we have suffered from our own government’s bad judgments.
When I learned early this morning about the Greek referendum, the European stock markets were already crashing. I went into my 401k self-managed brokerage account and adjusted my stop loss orders on our equity ETFs. I am pretty sure the limits I set will be reached today and I will close out of those positions. If I am right, my next move will likely be to use some of the cash to buy more TIPS. What else is there to do now?
I am just sick of the volatility. I am even more fed up and concerned about how little control any of us now have over our financial futures when we put faith and trust in government. Whether it’s in Greece or the U.S., our “leaders” are still too concerned about elections. They cannot bring themselves to do the right things.
The Greek government has punted a very important decision to the voters. Is there much doubt that the voters will say “no” to more austerity? This will cause Greece to default on its debt, sending the markets into another tailspin. I do not want to worry about things such as what the Greek voters will do when planning our retirement. Do you?
How are you handling this current crisis in your own investing?