We've Turned The Corner

October 24, 2011
	The briefing was updated yesterday and can be found in The Briefing Room. We began taking positions again last week which means we must have turned the corner?  Hopefully the market isn't trying to pull another fast one and we have to exit quickly once again.  The market wouldn't lie, right? I wrote about the Weimar republic last week.  It has been interesting to watch Sarkozy and Merkel duke it out this last week with their own versions of the Euro bailout agreement (or lack thereof).  Sarkozy, representing the French, wants to turn the EU bailout fund into a bank that can accept funds from the EU Fed.  The EU Fed can simply "expand its balance sheet" and extend the bailout fund lots of  money.  Unfortunately when you see the term "expand the balance sheet" in terms of a Federal Reserve Bank, it means PRINTING MONEY.  Germany knows that printing money isn't the answer, and they have the experience to prove it!  Instead they prefer to use the bailout fund as an insurance company, guaranteeing the loans (bonds) of the failing countries.  This has its own problems because if you are a stable country and don't need the EU insurance, you might lose investment dollars for your bonds because investors are buying higher yielding ones WITH the EU insurance.  Ultimately, they are trying to turn 400 billion euros into at least 2 trillion to stave off the first round of failures which, reportedly, could occur any day now.  I still have a hard time understanding how more leverage and debt is the solution to too much leverage and debt.  Maybe the U.S. administration could help them understand you can't increase debt to cure your debt problems?  I'm probably the only who thinks I'm funny. If Europe gets their problems figured out quickly enough, then maybe this 20% pullback will be behind us and we can ride off into the sunset and new market highs.  Turn the corner with us by checking out the briefing room.  Have a great day!! John Norquay CEO PivotPoint Advisors		In order to view the graphs and charts in our newsletter, please click the link at the top of your email to "always show images from PivotPoint Advisors" Resources Check out our Youtube Channel  Like our FaceBook FAN Page We manage money inside 401k plans. Know anyone who may want to use us? Click "Forward to a friend" (immediately below) to share this newsletter with friends you think may appreciate our services. Forward to a Friend Twitter Subscribe to the Weekly Briefing Report Unsubscribe Update Subscription Preferences View Email In Browser