European leaders may stave off a banking crisis for a few more weeks. Markets may even stage a relief rally as Greek debt worries abate. But make no mistake — a deeper crisis in foreign banks is coming.
Even if the U.S. technically runs out of money, creditors will probably allow a little time before calling it a default. But investors may bail long before then. Here’s a road map to how it would play out.
Investors worried about sinking U.S. Treasury values can breathe easier -- for now. New banking regulations mean sovereign debt will look a lot more attractive in the short term. After that, things could turn ugly.
Companies are reporting stellar results. But drill down in the numbers and you find those companies benefiting from temporary tax breaks and facing climbing costs. Stock pickers need to be extra-choosy.
Don't get caught investing in developing markets until it is clear that interest rate hikes have tamed inflation. India and Brazil may be safe by June; other emerging nations likely have more pain ahead.