Morning Report Tuesday 17 February 2015
Be prepared to get off the equity train early but not just yet
The bad news continues in the press today, the Greek exit from the European Union feels like it is getting closer by the day and Japan seems to be struggling to grow even after recent massive stimulus ($US29 billion last December alone). We even saw Iron Ore hit a one-month high yesterday on hopes that China will stimulate their slowing economy. When I stand back common sense keeps reverberating in the back of my head, I get very concerned that politicians and bankers are not prepared to take the medicine for the huge mistakes of the GFC. Would things be better now if we had suffered a 5 year long recession? Large parts of Europe obviously have been hurting, but most countries are fighting to avoid the same fate, politicians know it’s never good for elections!
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