The “Italy Crisis” is over.
I know the headlines read as though Italy was collapsing and the euro is about to implode. But the headlines are reporting on yesterday’s news.
The collapse of the Italy government means a new election. That, in turn, means a pro-euro politician heading Italy. And that in turn means the Italy Crisis is over.
By the way, if this was a FULL-BLOWN panic… Italy’s market (via iShares MSCI Italy Capped (NYSE:EWI)) wouldn’t be trading at “April 2018 levels.” It would be making new lows. It isn’t. It’s at critical support after running up over 75% this year.
That. Is. Not. A. CRISIS.
Instead, we are about to move into a “white swan” move in which the S&P 500 bounces off of support and makes a run to 3,000+ this summer.
This is the “White Swan” I’ve been forecasting since end of March 2018. It will mark THE blow-off top for the markets.
And we all know what’s going to follow.
On that note, if you are growing concerned about the current Central Bank created bubble bursting…. we are putting together an Executive Summary outlining all of these issues as well as what’s coming down the pike when the Everything Bubble bursts.