{"id":12982,"date":"2012-05-07T09:04:39","date_gmt":"2012-05-07T13:04:39","guid":{"rendered":"http:\/\/www.technologyinvestor.com\/?p=12982"},"modified":"2012-05-07T09:29:31","modified_gmt":"2012-05-07T13:29:31","slug":"sell-in-may-wait-for-the-european-political-and-economic-crisis-to-solve-itself-this-summer-maybe","status":"publish","type":"post","link":"https:\/\/www.technologyinvestor.com\/?p=12982","title":{"rendered":"Sell in May, Go Away; Wait for the European political and economic crisis to solve itself this summer. Maybe."},"content":{"rendered":"

Count them: Greece, Germany, France, Serbia, England. Huge election gains against austerity and in favor of radical left and right ideas. As the Wall Street Journal headlined, “Voter Anger Sweeps Europe.”<\/p>\n

And that’s just this past weekend.<\/p>\n

Sadly, Europe is back again, hurting our markets. My unfavorite weekend image:<\/p>\n

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\nFrom Greece, political leader of the far-right Golden Dawn party, Nikolaos Michaloliakos, spoke during a press conference on Sunday.\u00a0 Note the similarity to the Nazi swastika. Greece’s stockmarket dropped a whopping 7.7%.
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Europe has been coddled by populist socialism for the 50 years.\u00a0 Only a few countries — Germany and Sweden for example — have been disciplined enough to afford it. For the others, the wild government spending is coming home to roost.<\/p>\n

More than half the people in France work for the government. That’s mind-blowing for us, comfortable for them.<\/p>\n

Austerity and devaluation work. But only when you have control of your own destiny. The only way this will work for Greece and Spain (and perhaps others) is for them to get back their own currencies. And that may be how this political crisis will play itself out. Perhaps the only way. Meantime, the uncertainty and the unrest fostered by newly-empowered nutcases will hurt our stockmarket, and the businesses of our companies with global reach — especially now that China, India and Australia are also slowing.<\/p>\n

This is not the best time to buy American equities. I suspect they’ll be much cheaper soon.<\/p>\n

For now this market should be played to the downside.<\/p>\n

Favorite recent New Yorker cartoons:<\/strong><\/span><\/p>\n

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Harry Newton who spent much of the weekend coughing up green phlelm — a function of severe allergies, which I seem to be incapable of dealing with. Despite Clairtin, Benadryl, etc. Every doctor says it’s the worst allergy season here in New York they’ve ever seen. Maybe, it’s God’s way of punishing us for living in New York?<\/p>\n","protected":false},"excerpt":{"rendered":"

Count them: Greece, Germany, France, Serbia, England. Huge election gains against austerity and in favor of radical left and right ideas. As the Wall Street Journal headlined, “Voter Anger Sweeps Europe.” And that’s just this past weekend. Sadly, Europe is back again, hurting our markets. My unfavorite weekend image: From Greece, political leader of the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-12982","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/12982","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12982"}],"version-history":[{"count":0,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/12982\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}