Over the last couple of years, I've grown wary, well almost fearful when anyone says that any financial mess or crisis is '''contained'''.
Now, whenever I hear that the damage has been contained, I have come to expect the eventual cost of the crisis to be a whole lot more than initially estimated.
Some say that the crisis in Club Med is contained and that there is no risk of contagion.
Still others say that the finances of some states in the U.S.A., are not as terrible as pessimists may fear.
The prudent reader must read between the lines and ignore the noise in financial news as he makes his/her investment decisions.
The US is not immune to the current crisis in the Eurozone. A weak Euro will hurt US exports to Europe and subsidize European exports to the U.S.A.
Emerging market exporters are not immune to a slowdown in developed markets in the west.
As I've said in recent posts, it's not a time to be taking unnecessary risks.
Gold prices in the meantime have held up really well, despite a rally in the USD and a sudden sell off in global equity markets.