Informative articles in Morningstar Advisor about Europe:
http://www.morningstar.com/advisor/morningstar-advisor-magazine.htm
How Europe is Making Its Crisis Worse
Impact on US Economy Will Be Minimal
Bottom line:
Bonds that were once thought as "safe" turned out not to be so safe. And, with 14% of US GDP related to exports, and 22% of that to Europe--Exports to Europe are 3.1% of US GDP. A 6% decline in sales to Europe would only be a 0.2 % change in US GDP.
While the market seems focused on Europe--watch out for inflating prices, particularly oil and gasoline. A big rise in gasoline prices is thought by many to be the spark that led to the 2008 decline. People are better prepared today, but it could have a major impact on economic growth in 2012.
This information/opinion is for educational purposes and for the sake of discussion. It is not a sales presentation and not a recommendation or personal investment advice. Opinions provided are exclusively those of Wayne Strout and those quoted, and are not the opinions by any financial institution. All investing involves significant risk of loss and there is no proven method to eliminate that risk. No investment should be made without a complete due diligence process, fundamental analysis and a discussion with your personal financial advisor
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