It may finally be time to slide back that jug of olive oil from the front burner.
The financial markets have been held hostage by the Greek debt crisis
for far too long. But after many months of delay, and plenty of
bureaucratic red tape wasted, the end game is nearing.
And that brings us to a very important juncture:
What will the markets most likely focus on now? What will be the next driving catalyst of investor sentiment and price action?
You can probably guess the answer from the title of this article, and
I'll get to that in a moment. First, a quick update on Greece, and why
that whole debacle might soon be fading into the background...
The last hurdle to unlocking the 130 billion Euro aid package and
avoiding a disorderly default is the successful completion of the
private sector involvement (PSI) debt swap program. At last count,
roughly 58% of the eligible bond holders have signed up to take the
"voluntary" financial hit.
And today, the offer officially closes at 3 p.m. EST. While there are
several different scenarios as to how this can ultimately play out,
what's key is that the participation rate has crossed an important
threshold that should allow Greece to meet all the terms of the bailout
as demanded by the Eurozone, ECB and IMF.
What this means in simpler terms is that Greece gets the money it needs,
avoids a messy default, and makes a very important bond payment on
Can you believe it... we may possibly be less than two weeks away from
not having to worry about Greece every minute of the day. My guess is
that we probably won't have to worry about Greece going broke again for
at least a year or so.
From Olive Oil to Crude Oil
From my analysis, I feel that the price action in crude oil is going to
play a vital role in where the financial markets are likely headed over
the next several months.
And although you may not necessarily be an energy futures trader, that's
okay -- simply paying attention to the price action in oil could help
you with your own individual investment decisions.
Here are three reasons why Crude Oil is going to be the next front burner story:
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