Since October,I highlighted the Greek 10Y jumped to 8%. In my Strategy 2015, I try to explain why the Greece could be the starting point of a huge European political crisis. This is not an economic crisis (not at this stage, be patient). In addition, this political crisis will be stirred up by the fight between the ECB and the Germany.
But, get back to Greece, many investors and strategists prayed for a Samaras Victory. If the concept of Deus ex Machina is a wellknown process in Greek Tragedy, I always though that this story will finish as Pheidippides announcing the Marathon victory and died…
Samaras played a dangerous game and now a snap election will be organized end of January…
Syrisa party is the possible winner of this election and European Commission will have to manage that, but the Ukraine, the deflation, the rising power of Germany and too many other things to be efficient.
For American investors, the communism is back in Europe… I am scared about the Damocles sword, the EUR200bn of European Assets bought by US investors between 2012 and 2013…
I will stay massively overweight over US assets and I will be very very light over Euro Zone. The Swiss Franc will become the safe haven of the area… You know the consequences.
