It is possible that on Fri. equity traders were somewhat memorized by the huge uncertainties being played out as part of the Japanese disaster while overlooking significant problems in other parts of the world that are quantifiable.
Through the day, besides the tremendous amount of suffering in Japan, I was thinking about a more latent issue - the sovereign debt crisis in Europe.
As is usually the case Alan Abelson sums up these concerns with a paragraph from his weekly column:
"As Harald Malmgren—boss man of the eponymous Malmgren Group, whose insightful observations on global markets we've had the pleasure of quoting on more than one occasion—puts it, 'The Euro crisis is not over.' Rather, he says, 'European politicians have become practiced and effective in postponing problems and diverting market attention from underlying weaknesses.'"
Abelson, Alan, 2011. Lost continent. Barron's, Mar. 12.
I could not agree more. In combination with other global troubles, I anticipate a greater chance of a double-dip recession (see 1937). This will affect markets on Mon.
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