As I write this, the world is holding its breath over Greece’s massive debts.
The Greek government, European Central Bank and euro-zone leaders are in meetings with investors who own Greek bonds, trying to shove massive losses down their throats.
Unsurprisingly, the private bondholders — mostly other governments, banks and hedge funds — are fighting any “haircut” tooth and nail.
At this point, only one of two things can happen:
They could announce that they have come to an agreement …
OR, they could announce that they have failed to reach an agreement — in which case, the Greek government will be forced to default on its debt.
Which way will it go? Nobody knows for sure, of course. I’m guessing that the bondholders will ultimately relent and a deal will be reached.
But here’s the thing: The announcement could come at any moment. It may have already happened before you see this post!
And when it does, it will almost surely hit stocks like a ton of bricks: If last year is any guide, a deal could send stocks screaming higher. On the other hand, if there is no deal, stocks could plunge.
But agreement or no agreement, this situation perfectly highlights the #1 question you need to answer in the year ahead …
How do you invest in a crazy world like this one?
The great news is, there is a way for prudent, safety-conscious investors to grow wealth consistently today.
I will touch base later on with more info’s until then for now
Good trading
Erik