When you talk about the “stock market”, there is so much more to it than the S&P500 or what the Dow did on a given day, week or month. These are just 2 popular indexes in the most popular country in the world. But in reality, that’s all they really are. One of them, the S&P500 is cap-weighted, so the biggest companies in the world, $AAPL $FB $XOM etc, drive the direction of the index. The other, the Dow Jones Industrial Average, is made up of just 30 humongous American stocks. That’s what these things are.
The actual stock market, or “market of stocks”, includes many more stocks and indexes, not just in the U.S., but globally. Today I want to talk about what we’re seeing out of the Financials in Europe and what the implications of the recent behavior might be. [Read more…]