This weekend, the much-hyped Greek elections occurred, with TPTB attempting to convince the world that a Syriza win would be catastrophic, and a New Democracy win “blissful.” Of course, neither situation is any different, other than that the timing of the ultimate Greek departure from the Euro currency mechanism. The MSM desperately wanted to bully stocks higher - and gold lower – to “celebrate” this Pyrrhic victory, but the markets are not co-operating, major equity indices flat and downtrodden PIIGS like Italy and Spain seeing their stocks AND bonds torched. Meanwhile, gold is unchanged and silver UP a dime, despite NUMEROUS late night and early morning attacks. In all this weekend’s Greek hype, it was “forgotten” that France elected a Socialist majority, Fitch lowered its outlook on India’s credit rating to “Negative,” and China reported horrific real estate data. Be ready for ANYTHING this week, given Wednesday afternoon’s FOMC meeting.
Andrew C. ("Ranting Andy") Hoffman, CFA
Miles Franklin Ltd.