You are right in that every bit of news will make a small impact on the market, so yes the markets have certainly adjusted themselves to the possibility of Greece defaulting.. up to a certain level. But the possibility, even if it's quite high (in my opinion) is still far from it actually happening. That moment the possibility becomes a fact... well as you said "On the day they default, there will definitely be a lot of people selling" In fact I believe the past couple of weeks of downhill on the European markets are mainly due to this Greece mess.. yet again. But I still believe that as their default becomes more and more apparent... and especially when it happens, we will be seeing a lot of red on the charts.
This is wrong. Yes, Google has a lot of zany and fun ideas going on which get all the headlines. But the actual income side of Google is very very boring. Almost all of Google´s money comes from Adwords/Adsense. Not sure what company this site uses, but probably adsense. If you look at the ad on this very page ( Mine is a Nissan truck ad).. Nissan pays Google to place ads on websites, and Google pays websites for placing ads.. Google is the middleman and earns 33% of everything Nissan pays. Google absolutely dominates online advertising. Google also puts ads on their search results page, in that case, Google gets 100% of the money Nissan pays to put an ad on the search results page whenever someone searches for ´best trucks´. Google has a lot of ideas and innovate things in their pipeline, most of which will never earn any revenue ( see Google Maps, Google Translate, and most Google services)... but they do that stuff because they have a ton of money coming in from ad revenue.
I heard that global economy will crash and meet its downward spiral blow to US economy by the end of 2015? Or has Swiss Bank powers have to do with world economy and autonomy since the middle ages? Just a little research.
I didn´t finish my point. Yes, there will be a lot of people selling, but there will also be a lot of people buying. Activity will be very high, but I doubt the market tumbles on the day they officially announce it. I am not some sage investor, but in my experience if you are buying or selling based on the news, you are losing. With news, you need to be contrarian.. do the opposite of what the news tells you to do because that is how you take advantage of ´emotional investors´ who are sheep to the news. If they announce the default after hours, wait about two hours after the open and gobble up stocks you like that have lost. By the end of the day, the market will have recovered and you will have gotten some bargains..
I guess time will tell. People tend to overreact and I do agree that negative news provide us with a good buying opportunities. A country.. a western country, defaulting will certainly unnerve the markets and cause some sort of a sell off. Just look at yesterday, the S&P dove about 0.25% in minutes simply because the IMF officials said that they think the two sides of the Greece mess are too far apart to manage a deal. And like you said, it's going to be a "gradual default" so we could be seeing several of these tiny dips in the next few days (18th is technically the last day for Greece to get a deal done) but that doesn't mean that we won't see a larger dip when the news is confirmed. edit: I'm not saying that the Greece default is going to happen next week. It's completely possible that the ECB and IMF will once again bend and throw a few billion to Greece. But if that happens then we will be returning to this very same conversation towards the end of the year when they start running out of money again.
Was just reading the news and caught this stat from an article ´the Greek economy only accounts for 1.8% of the total eurozone economy´. Like I started saying early in this thread, this has very very little trickle-down to the US economy, even countries like Germany will barely be effected. The main theme of the article was that the EU should just boot Greece, the amount of time, energy and money being devoted by the EU to the Greece problem is disproportionate to how insignificant Greece is to the overall EU economy. My thought is that even if they somehow save Greece, yet again, Greece will just continue to be a leach on the EU for at least the next decade. Greece has acted selfishly and recklessly for years without any concern for it´s part in the EU except for using the EU for support. The more I read this week, the more I think most markets have already factored in a complete default. Tomorrow afternoon I am going to find a company to buy if there is a panic sell on default day. A company that is ´Greek related´ but has financials that mean it isn´t really going to be affected... in other words, a company that is going to get unfairly punished.
Your comments on Apple are so true. As much as I hate the social implications and stereotypes regarding the people who use Apple products, Apple really puts out solid products. They have expanded far beyond computers, which was their original market and original demographic.
