It is becoming evident that the $1 trillion European bailout package has not won over Wallstreet or any smart investors. The Euro has fallen to a 4-year low against the U.S. dollar as widespread sovereign debt in eurozone has forced investors to retreat from Euro. The threat of Europe’s debt crisis spreading to the world seems to have sparked a market sell off. The DOW has dropped over 11% in a month. This could become worse… As an investor, stay cautious and think about preserving your cash.
“The euro’s fall from $1.44 in January to below $1.19 on Friday is largely a vote of no-confidence in Europe’s handling of the Continent’s burgeoning sovereign-debt crisis. Neither the $1 trillion bailout package announced last month nor the European Central Bank’s decision to buy up junk-rated government debt has done anything to convince investors that Europe’s leaders understand what truly ails their economies”
THE WALLSTREET JOURNAL
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