It’s Rally Time – +2.5% to 5% is Low Hanging Fruit

Expect global markets to rally from current depressed levels due to the apparent favorable developments around Greece. It appears Greece and its creditors are headed toward a resolution by next week, which would remove uncertainty from global markets. Barring any unanticipated other disruption this weekend, I would expect a rally should be allowed to continue into next week. The result should be a gain of at least 50 points or 2.5% to the upside in the S&P 500 Index, and possibly as much as 75 points or 3.5% before the U.S. Federal Reserve’s monetary tightening plans again weigh into late September. For worn down European shares, beaten back Greek shares, and even recently staggered Asian shares, the gains should be more substantial. Long-term, investors will have to watch for U.S. economic justification of Fed monetary tightening to find reason to go higher, but low hanging fruit is there to be taken now. See the report on the stock market rally here. Report interests Global X FTSE Greece 20 ETF (NYSE: GREK), Vanguard FTSE Europe (NYSE: VGK), iShares Europe (NYSE: IEV), WisdomTree Europe Hedged (NYSE: HEDJ).

Market Sector Security	Low Hanging Fruit
SPDR S&P 500 (NYSE: SPY)	+2.5% to 4.4%
SPDR Dow Jones (NYSE: DIA)	+2.5% to 4.6%
PowerShares QQQ (Nasdaq: QQQ)	+2.8% to 4.8%
iShares Russell 2000 (NYSE: IWM)	+1.8% to 5.4%
Vanguard Total Stock Market (NYSE: VTI)	+2.5% to 4.3%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.