What Now?

So this is not the first time the Greeks gave an indeterminate gift to their perceived enemies.  In this case it was a referendum result instead of a horse.  The Greeks may believe the referendum meant one thing, but the rest of Europe believes it means another.  The end result is that the Greek position in Europe is more in doubt than ever.

Markets hate uncertainty.

Even though rational analysis indicates minor effects outside of Greece itself, investors are primed to reduce risk.  That has been going on for two weeks.  We are either close to resolving this downturn or we could start another leg downward.  We will know very soon.  We have moves to make in either case.  We don’t like responding to volatility, but sometimes we have to in order to put our clients’ accounts in a better position to weather the storm and take advantage of the recovery.

The Lonely Bull