Greece is pretty much out of money.
That much is clear. What isn’t clear, however, is if and when this crisis could potentially be resolved.
After a resounding “NO” from Greek voters in response to Europe’s latest bailout proposal, there’s a serious lack of clarity. All of that has insiders on Wall Street feeling very strongly, but their feeling might surprise you…
If you haven’t been able to stay entirely up to date on the situation in Greece, here’s what you need to know:
- Greece is dangerously close to running out of money.
- Greece voted “No” to Europe’s bailout proposal saying that the “punishment” included in the terms was unacceptable, including tax hikes.
- Greece has closed its banks for a week.
- Greek unemployment rates are over 25%.
Now we’ll have to wait and see what the next proposal will look like in order to get any feeling on whether or not Greece and Europe are coming closer to an agreement or not.
The good news is that Greece is a relatively small economy, meaning that much of the crisis being experienced there shouldn’t cause any sort of global crisis.
However, the .S. market opened sharply down on Monday, and much of that has to be attributed to fears of the Greece situation. Of course, the market was able to recover quickly in the morning and return to Friday’s closing level.
But even with all of that trouble staring Europe in the face, insiders on Wall Street are actually as BULLISH as they’ve been since January or March.
That’s right- insiders are expecting the market to rise.
According to the insider transaction ratio (which measures the number of sales to buys by company officers, director’s, and 10% share owners), any reading under 12 to 1 is bullish while any reading above 20 to 1 is bearish.
As of Monday morning before market open, the insider transaction ratio showed a number below 10!
That’s a very strong bullish feeling by the insiders, and one that would be welcomed by most U.S. investors.
And considering the recent low points of the stock market, a rise this week would make perfect sense. As long as we can look past Greece’s struggles, a significant climb could be in the cards this week.
