The market is reacting or rather over-reacting to more European hoopla. Regardless of the headlines, the European Union will find a solution because they must find one. The headlines moves emotions and thus stocks in the short term, earnings are what move stocks in the long term. Now that earnings season has started, as long as they are good which they should be, the market is poised to go higher from here.
That said, the longer term US and European debt problems still exist, and will eventually hurt investors who are not prepared. These issues and more are discussed in depth in my new book Facing Goliath: How to Triumph in the Dangerous Market Ahead.
Regards – Keith Springer