You can drive yourself crazy following the day to day gyrations of the stock market. The father of value investing, Benjamin Graham once said that in the short-term the stock market is a voting machine, while in the long-term it is a weighing machine. "What this basically means is that in the short-term stocks will move irrationally based on news, spin, politics…, but in the long-term stocks will follow fundamentals and reward profits."
Yesterday market rallied on the news that Western banks are coordinating efforts to print money to support the Euro; an act of 'irrational exuberance' if there ever was one. By any measure, Greece and Italy are insolvent. If they were houses in the Las Vegas suburbs, the owners would drop the keys off at the bank, drive away and start over somewhere else. Much harder to do for a sovereign state. Although based on proposed asset sales, Greece is essentially holding a garage sale of the country formerly known as Greece.
We are witnessing the Euro's demise and yesterday's actions only postpone the inevitable. The concept was fatally flawed. I share more similarities with other families in my neighborhood than Greece and Germany and I'm not opening joint bank accounts with my neighbors. The idea that US government, the brokest entity in history, is printing money to support the unsustainable Euro and insolvent paper issued by European banks to support their unsustainable societal model seems the height of folly.