The debt crisis spreading across parts of Europe is seen as the biggest threat to the performance of the U.S. stock market over the next 12 months, according to a survey of professional money managers.
In its latest quarterly survey of investment professionals by Russell Investments, respondents ranked European economic issues above all other major threats, with a top ranking of 73%.
Here’s the catch: this is from an article in Investment News from June 23, 2010! At the moment, the European debt crisis was big news. Now look at it, less than a year later. Besides Greece, both Ireland and Portugal have blown up and agreed to bailouts—and no one cares. Most Americans probably couldn’t find Greece on a map now.
How soon we forget that the burning problems of today are completely forgotten tomorrow! Keep your perspective about the news of the day and don’t get emotionally sucked in. Headline risk is only risk if you are making goofy decisions because of the news environment. To paraphrase G.K. Chesterton’s quip about exercise, if you have an urge to trade on news, lie down until it passes.
Source: www.wembleymattersblogspot.com
