Reports are surfacing that Greece is going to exit the Euro imminently. We are now witnessing things that were deemed to be “impossible”, “politically unviable”, or slightly “conspiratorial.” As I said many times before, volatility is going to return the second half of this year. This is only the beginning.
Global markets should be pretty volatile, especially with short interest so high in places like Asia. The threat here is that civil unrest spreads throughout Europe, causing a run on banks (which is already beginning), and a domino effect where more countries leave the Euro. I’ve stated many times that the Euro is a fundamentally flawed currency that was not well-conceived from the start. Now we are seeing the unraveling.
There is the real potential for the dollar and Treasuries to spike here. Unlike most gold bulls, I’ve been consistently warning that the dollar and U.S. Treasuries would receive capital flows first once a Eurozone collapse took place. But it is only a short-term harbor for the storm that is coming straight to our shores within 5 years.
We are quickly approaching one of those times when the men are separated from the boys. Investment opportunities on the long and short side are opening up in a way I haven’t seen in years. I’ll be discussing this further in my newsletter and in future posts.