Word of two European Prime Ministers resigning on the same day is kind of a big deal, at least enough to send our market up 1%. First, Greece announced it will name a replacement for Prime Minister Papandreou, then news broke this afternoon that embattled Italian PM Silvio Berlusconi will reportedly step down soon after his country's austerity measures pass.
And yet, Bob Pavlik, the chief market strategist at Banyan Partners says just the opposite, arguing that a year from now, Europe's problems will be all but forgotten.
"For the most part we seem to have gotten over the hump," Pavlik says in the attached clip. He's undeterred by the instability, slowing economy, and contagion that has otherwise captivated the world markets for the past month.
For the record, Bob is a smart, hard working and likable fellow but I totally disagree with him on this point. It has been my contention lately that the bigger, more stubborn problem facing Europe will be reversing a recession in the face of mandated, budget-balancing austerity cuts.Read More »from Fear Over Europe Is “Overblown” Says Strategist