In the 1970's TV show "Kung Fu," Master Po once said, "If a man dwells on the past, then he robs the present. But if a man ignores the past, he may rob the future."
Personally, as cool as that sounds, that kind of advice just leaves me baffled.
And baffled is exactly how I feel in the post-"Save The Euro" summit era as I try to decipher the reactions of all the various masters out there and whether it was a success or a failure.
"There were three important things that took place around the summit that are very important, that will shape the investment climate," says Marc Chandler, chief global currency strategist at Brown Brothers Harriman. He suggests the summit was a success, as long as you went into it with the correct expectations (Little Grasshopper).
The first major development is the decision by the ECB to provide a "practically unlimited amount of funding to the European Banks" Chandler says, adding, "I think this is really under-appreciated by the markets...the ECB basically opened up the spigots." Since he was not expecting the ECB to "backstop to the sovereign debt market" with unlimited bond or currency buying, Chandler's take away is far more positive than mine, even though his macro forecast is that the Euro is still heading lower.Read More »from 3 Key EU Summit Developments That Actually Matter