Rathunas Capital

Wow the pain for the EU just keeps coming. Spain has now had there long term debt downgraded. Today could be seen as a dead cat bounce from Tuesdays close. However I see this as a plus for the US market. A flight to safety. Money has to flow somewhere and since the retail investor still hasn’t come into the market yet. This is more than like the work of institutional investors from abroad. We could be looking a sustained market in the near future. Bad time to be long the euro.

Well that didn’t help, Portugal has now been downgraded by S&P. This really brings forward the problems of debt and the likelihood of another country in the EU which will need bailed out like Greece. Make sure you do not have any money in the EU. The Euro will be under more and more pressure and will spread to the bottom line of more world wide countries. I am still bullish on the US stock market and continue to invest during this time.

Be very careful with foreign investing. When investing in stocks which are based or do a lot of business with a forge in country always track their government treasuries. Greece is in a very bad situation and has put the rest of the EU in there with it. Greece is being bailed out by the rest of the EU and IMF. This creates a burden for the stronger countries in the EU to support the weak Greece nation. This is another violation of darwin’s survival of the strongest. Others would call this socialism on a different scale. Either way this act of support will bring the rest of the EU down as well. Two other countries are feeling the pain as Greece. Portugal and Spain are having some issues as well. If or when the time comes for another country needing a bailout they will expect it they will be like Greece. If Greece does not drastically cut spending and make many other changes to their monetary policy this will mushroom and spread across the EU. Always know what your money is in and where that money is used.

PVX is making a strong move. The commodities have been waiting for a good run and here it is. I see this running all next week. The dividend yield is 8.9% right now and it pays a monthly dividend. Keep this natural gas stock handy and on your radar if you don’t have it in your portfolio already.

Yeah still looking good the market starts lower and opens up the buying opportunity. The market moves higher from the open. Commodities are finally getting a good boost. Natural gas is a one for today and should keep running for a week or two.