Is There A Light At The End Of The Tunnel In Europe’s Financial Crisis?

Europe’s Financial Crisis:  The Worst Is Over

Euro Debt Crisis RecoveryFor the last several years, one of the driving uncertainties in markets world wide was the deep financial crisis facing much of the Eurozone.  First Greece, Ireland, Spain, and Italy all started experiencing major financial stress.  From bank bailouts, to rioting, to austerity; the face of Europe was looking pretty grim.  For investors, this bread uncertainty; many hesitated to invest their heard earned assets into what appeared to be tumultuous economic times around the globe.  However, it appears times are changing, recently, Mario Draghi, European Central Bank (ECB) President, suggested the worst of the sovereign debt crisis may be over, saying the “darkest clouds” over the euro area have receded due to policy steps taken last year.

Policy Steps Taken In Europe Have Improved European Financial Crisis

Draghi says, Europe’s leaders “recognized that monetary union needs to be complemented by a financial union, a fiscal union, a genuine economic union and eventually a deeper political union.”His comments indicate that he is increasingly confident the three-year debt crisis has been contained and that the region can emerge from recession later this year. The ECB expects the euro-area economy to shrink 0.3 percent in 2013, with a gradual recovery beginning later in the year.

European Countries Are Improving Their Public Finances

On Tuesday Draghi said many countries are making solid progress in bringing their public finances under control and making structural reforms to increase competitiveness. Let’s hope Washington follows Europe’s lead and makes the structural reforms we need hereto help us avert our own fast-approaching debt crisis.

For many investors, hearing that things are improving economically around the globe, is like putting salve on an open wound.  The markets have been stale as many have been sitting on the sidelines afraid to invest into what could be a risky endeavor.  The fact that Europe is improving is a great sign for investors.  If the U.S. is capable of resolving many of their financial issues and creating across the board financial reform for entitlement programs, we could see economic improvement as well in the years to come.

As things start changing around the globe economically, you can be sure the markets will soon follow suit.  As an investor it is wise to stay one step ahead of the pack and make investment decisions today that will lead to your financial advancement tomorrow.  For more information on how to invest given today’s economy speak to a Redhawk Advisor near you.


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