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The Euro-Zone Crisis Will Be Back Very Shortly

Stock-Markets / Eurozone Debt Crisis Aug 10, 2013 - 06:24 PM GMT

By: Graham_Summers

Stock-Markets

The financial media continues to talk about how Europe is saved.

It’s odd that somehow everything is starting to look so much better now than Angela Merkel is up for re-election in Germany. Could it be coincidence that the worst Crisis in years suddenly went away right as the women with her finger on the “bailout” button needed to convince German voters that she’s doing a great job?


Remember, politics drive everything in Europe, including the markets (Spain’s political scandals had a bigger impact on the Spanish Ibex than a myriad of horrific economic data). Which is why everything is on hold until the German election ends next month.

Meanwhile, underneath this veneer of calm, things worsen. Recently…

  • Italy’s non-performing bank loans rose 22% year over year in May (the most recent data)
  • Spain’ real non-performing loans are at 17%.
  • The IMF predicts Spain’s unemployment will be over 25% for five years.
  • Total EU youth unemployment just hit a new all time high, almost 25%.
  • Cyprus just OK’d the theft of 47.5% of all deposits over €100,000 at its troubled banks (yes, people just lost nearly half of their savings).

The European markets look equally ugly.

Spain’s Ibex has traded sideways since late 2012. It’s now coming up against major resistance. We’ll see how that turns out.

Germany’s Dax is forming a massive bearish rising wedge pattern.

This market needs to explode to the upside or we’re going to see a correction that erases all of the gains since mid-2011.

The same is true of France:

Again, we need a parabolic rise now or this is a false breakout and France’s shares are heading lower.

We’ve all seen how false hopes work out for the markets: BADLY. Given that Europe is beyond bankrupt at this point, I fully expect that that the EU Crisis will be back with a vengeance very shortly. When you consider that the entire EU banking system is leveraged at 26 to 1, it’s clear that there’s only one outcome possible here: implosion.

Folks, there is no other way to put this… the markets are in a massive bubble. And when it bursts, things will get ugly very FAST.

Clicking Here Now!!!

Graham Summers

Chief Market Strategist

Good Investing!

http://gainspainscapital.com

PS. If you’re getting worried about the future of the stock market and have yet to take steps to prepare for the Second Round of the Financial Crisis… I highly suggest you download my FREE Special Report specifying exactly how to prepare for what’s to come.

I call it The Financial Crisis “Round Two” Survival Kit. And its 17 pages contain a wealth of information about portfolio protection, which investments to own and how to take out Catastrophe Insurance on the stock market (this “insurance” paid out triple digit gains in the Autumn of 2008).

Again, this is all 100% FREE. To pick up your copy today, got to http://www.gainspainscapital.com and click on FREE REPORTS.

Graham also writes Private Wealth Advisory, a monthly investment advisory focusing on the most lucrative investment opportunities the financial markets have to offer. Graham understands the big picture from both a macro-economic and capital in/outflow perspective. He translates his understanding into finding trends and undervalued investment opportunities months before the markets catch on: the Private Wealth Advisory portfolio has outperformed the S&P 500 three of the last five years, including a 7% return in 2008 vs. a 37% loss for the S&P 500.

Previously, Graham worked as a Senior Financial Analyst covering global markets for several investment firms in the Mid-Atlantic region. He’s lived and performed research in Europe, Asia, the Middle East, and the United States.

© 2013 Copyright Graham Summers - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Graham Summers Archive

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