Markets moved slightly higher in early trading Tuesday on the news that European Union leaders are taking steps to finally start delivering Spain a lifeline worth around $120 billion.
The EU says it will make more than $35 billion in emergency loans available to Spain by the end of the month to help shore up the banking sector in Europe's fourth-largest economy. Will the aid to Spain finally help move the needle to improve Europe's ongoing debt crisis?
David Kotok, chairman and CIO of Cumberland Advisors, doesn't think so. And as of 11:30 am ET stocks were indeed in the red. The S&P was down 0.19 percent, and the Dow lost 0.13%.
"This latest twist in Spain is a speck," says Kotok. "The problems in Europe are not being solved. The peripheral economies are contracting [and] you're still running deficits, which are expanding the debt."
Kotok has a history of being generally bullish in the face of stark headwinds. As recently as this spring, KotokRead More »from S&P 500 Headed to 1600 — If D.C. Politicians Don’t Ruin It All: Cumberland’s Kotok