With the French election in the books and the turmoil in Greece potentially just getting started, what do some market "pros" think?
Quotes from 11 different sources described as economic and financial markets pros, although as we have seen in the past calling most of these people "pros" is an insult to true "pros" everywhere:
#1 Tres Knippa of Kenai Capital Management: "What is going on in Europe is an absolute disaster…the risk-on trade is not the place to be. I want to be out of equities and very, very defensive because the situation in Europe just got worse after those elections."
#2 Mark McCormick, currency strategist at Brown Brothers Harriman: "We’re going to have higher tensions, more uncertainty and most likely a weaker euro."
#3 Nick Stamenkovic, investment strategist at RIA Capital Markets in Edinburgh: "Investors are questioning whether Greece will be a part of the single currency at the end of this year."
#4 Jörg Asmussen, a European Central Bank executive board member: "Greece needs to be aware that there is no alternative to the agreed reform program if it wants to remain a member of the eurozone"
#5 Tristan Cooper, sovereign debt analyst at Fidelity Worldwide Investment: "A Greek eurozone exit is on the cards although the probability and timing of such an event is uncertain."
#6 Art Cashin: "Here’s the outlook on Greece from Wall Street watering holes. If a coalition government is formed or looks to be formed, global markets may rally. Any coalition is unlikely to make progress on goals, since austerity is political suicide. There will likely be another election around June 10/17. A workable majority/plurality remains unlikely, so back to square one. Therefore, Greece will be unable to attain goals by the deadline (June 30). Lacking aid funds, pensions are suspended and government workers are laid off. Protestors take to the streets and government is forced to revert to drachma to avoid social chaos. Pass the peanuts, please."
#7 John Noonan, Senior Forex Analyst with Thomson Reuters in Sydney: "Sentiment is very bearish, The euro is under a lot of pressure right now. I get the feeling that it’s going to be a nasty move lower for the euro finally"
#8 Kenneth S. Rogoff, a professor of economics at Harvard: "A Greek exit would underscore that there’s no realistic long-term plan for Europe, and it would lead to a chaotic endgame for the rest of the euro zone."
#9 Chris Tinker of Libra Investment Services: "It’s a binary decision. If Greece gets itself to the point where the European administration says, ‘We can’t play this game anymore,’ that starts a domino effect"
#10 Nicolas Véron, a senior fellow at Bruegel: "France has very limited fiscal space and actually has to engage in fiscal consolidation"
#11 80-year-old Greek citizen Panagiota Makri: "I'm confused. I feel numb and confused. Only God can save us now"
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