Hosni Mubarak finally resigned as Egypt’s ruler, effectively ending Cairo’s modern monarchy. Clearly this is good news for the financial markets as it removes some of the uncertainty, mostly the threat of increased violence and bloodshed. Although there is a question of who will lead next, I believe there is little doubt that the military will take over. This will come as welcome news to the Egyptian people as the military is seen as legitimate, reasonable and compassionate towards the people.
The US markets are still riding high on positive earnings and more importantly the continuation of Bernanke and The Federal Reserve’s policy of Quantitative easing. I expect to hear that a QE3 will be put in place once QE2 is over just a few months from now.