Greg’s on the road from Adelaide to Melbourne this morning.
He sure picked an explosive day to hand me The Daily Reckoning reins!
It’s a long way from Adelaide to Athens. But here, there and throughout the 14,000 kilometres in between, investors are on edge today.
You can see it across all the asset classes. The Greek drama has seen stocks gyrate…investors reconsider the safety of bonds…and it’s even knocking some steam out of Australia’s booming capital city property prices — at least, if you’re watching auction clearance rates.
The confusion is clear, too, in the currency market. The Aussie dollar has been sinking for weeks in response to the lack of progress in Greece. The currency gained a little after Greece’s finance minister stepped down yesterday, but it gave up all those gains overnight.
Reserve Bank of Australia governor Glenn Stevens will be toasting that AUD weakness with a warm shot of ouzo. The markets are belatedly giving Glenn what he’s wanted for more than six months — a currency below 75 US cents. But it’s too simple to chalk up the Aussie dollar’s weakness solely to the European debt drama.
In case you hadn’t noticed while Greece has hogged the headlines, the Chinese stock market is in full-blown meltdown mode. To the extent that this drop heralds economic weakness in China, it’s a huge potential hazard for Aussie investors.
Where will these crosscurrents push the Aussie stock market? How can you protect your portfolio from an even bigger drop than the one that has just caught investors in Chinese stocks?
We at Markets and Money know you’re asking these questions. So the time is ripe for me to host a live Q&A session. It’s free for you to participate. I’ll discuss what’s going on in Greece and how you can protect your portfolio from the risks emerging in the system.
All you have to do is go to Markets and Money Facebook page, click on ‘Like’, then come back on Friday at 12pm AEST for the live event.
If you can’t make it at noon on Friday, don’t worry. Just submit your questions to us via email and we’ll do our best to address them on Facebook at noon on Friday.
Greg is not the only colleague of mine on the road this week. Strategic Intelligence’s Jim Rickards crossed the Atlantic overnight from New York to London.
While Jim was in the air, he was good enough to write up an update on his ‘There Will Be No Grexit’ thesis.
Jim discusses the dangerous similarities between the meltdowns in Greece and China…what the overnight developments mean for Aussie investors…and how and when you should protect your portfolio.
It’s your second essay for today, hot off the press.
Tim Dohrmann +,
For Markets and Money, Australia
PS: If you haven’t heard, Jim Rickards has just released a new book called The Big Drop. It wasn’t a book he was intending to write. But it warns of a few critical dangers that every Australian should begin preparing for right now. That Aussie connection is why Jim asked me to pen the foreword — a request I gladly accepted.
Here’s the catch — this book is not available for sale. Not anywhere in the world. Not online through Amazon. And not in any bricks-and-mortar bookstore.
Instead, I’m on a campaign to spread the book far and wide…for free. Because every Aussie deserves to know the truth about the imminent dangers facing their wealth.
That’s why I’ve gone ahead and reserved a free copy of Jim’s new book in your name. It’s on hold, waiting for your response. I just need your permission (and a valid Australian postal address) to drop it in the mail.
Click here to fill out your address and contact info. If you accept the terms, the book will arrive on your doorstep in the next few weeks.