Tags: Greek | Fear | us | Rally

Keith Springer: Greek Fear May Have Made Many Miss US Stock Rally

Wednesday, 08 Feb 2012 08:50 AM

Stocks have performed well this year, but for those who jumped to the sidelines fearing a Greek implosion, it may be too late to get back in, says Keith Springer, president of Springer Financial Advisory in Sacramento, Calif.

Once retail investors jump in, institutional investors will likely sell and send prices back down.

"The all-clear sign is probably never going to happen," Springer tells CNBC.

"The market is going to rally so much that the average investor will get complacent, throw in the towel and get in. And that's what typically happens at market tops."
___________________________________________________________

Unthinkable ‘Death Cross’ Signal Haunts Investors
MarketWatch reports that “all three major U.S. indexes now are in Death Cross mode,” signaling a possible crash. Watch the Aftershock Video, Be prepared!

___________________________________________________________

Institutional investors and high-frequency traders are buying stocks through complex formulas and trading strategies, while overall money flowing into stocks isn't rising.

"Really, there's just no fundamental reason to buy this market," Springer says.

"The European situation is nowhere near being solved. It's just in a lull period. Everyone knows it, but it's off the front page and out of our face."

While markets have priced in defaults in Greece, possibilities of a messy one have traders on edge.

Greece is negotiating restructuring terms with its private creditors on one hand while discussing austerity measures with multilateral lenders like the International Monetary Fund the European Union on the other hand in order to tap $170 billion in bailout money.

"People are hopeful there will be some resolution on Greece. Nothing dramatic is happening, but generally people are more confident that we will get a resolution on Greece and they will remain in the euro in the short-term," says Andrew Sullivan, principal sales trader at Piper Jaffray in Hong Kong, according to the Associated Press.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
301
2012-50-08
Wednesday, 08 Feb 2012 08:50 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved