While Greece Roils, U.S. Settles Into a Rut
Most reports this week showed an economy that continues to trudge along with no real acceleration or deceleration.
U.S. bond and stock markets were virtually unchanged on the week, which was really good news compared with the rest of the world. The whole Greek situation, which came to a head over the weekend, weighed much more heavily on markets outside of the United States. While the U.S. was also down a lot on Monday, many of the losses were recovered by the end of the week. European-related equity markets were down 3%-4% for the week while emerging markets were down just more than 1% and the S&P 500 was virtually unchanged. Commodities were slightly higher on the week.
It is still a little surprising to us that a country the size of Greece, which what one commentator mentioned was about the economic size of Alabama, was moving world markets this much. It does, however, say mountains about Europe's ability to cope with problems and that there are potentially serious problems with the structure of the eurozone. The short-term drama should settle down soon, but the longer-term structure of the European Union, with disparate countries with different growth rates tied to one rigid currency, could prove to be a real problem.
Robert Johnson, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.