After a long period of decline against the backdrop of the Greek crisis, European stock markets are picking up their spirits somewhat. From there to imagine that the markets are again confident in the future, there is a step that must not be crossed obviously.
Around 3500 points?
The CAC 40 takes over if more than 11 points over a month (November 4, 2011 – 10:00), but the decline recorded since January 2011 still remains more than 16%. The result is even more appalling when you look at the level of the index over 5 years. The drop is then more than 40%.
The question today is whether this rise will have a lasting effect or whether the stock market will continue to play the “roller coaster”. In short, what type of placement should be considered?
Looking forward to the G20 and the settlement of the Greek crisis.
The holding of the G20 in Cannes will have a strong impact on all European indices and the decisions that will be taken today (Friday 4) on the Greek crisis are, therefore, highly anticipated. In addition, the markets remain suspended at the official announcement of Prime Minister George Papandreou to abandon the referendum.
Will the strength of the European community as a whole vis-à-vis Greece be sufficient to make the bailout plan feasible? Many doubt it. If only because the country has almost no growth capacity. Its tax system is anarchic and can not provide the state with regular income.
On the other hand, undeclared work is a very important part of the country’s activity.
We remain extremely measured and consider that, to date, conditions are not in place to regain confidence in the equity market.
Safe-haven securities such as the tax-free passbook, gold or hard currency are a satisfactory waiting solution. Opening an A booklet may be the best thing to do if you do not have one yet.