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5 Issues Investors are Worrying About

Last update on: Jun 18 2020

There’s a lot for investors to worry about. There’s almost always is, of course. This article does a good job of identifying five things investors should be worrying about now. But the real question investors need to ask isn’t what could go wrong. The important question is: What already is priced into the markets? If things that could go wrong already are priced into the markets, you can’t make money by investing with those worries.

5) Italian banks. As slow-moving train wrecks go, the Italian banking collapse has moved at light speed compared to Greek sovereign debt.   By most other standards, however, it’s been a long, drawn-out, and painful process.  Banca Monte dei Paschi was founded in 1472, and it feels like it’s been collapsing ever since.   While the authorities implemented a short selling ban yesterday, it seems difficult to credit that short sellers were the reason for bank’s demise (as opposed to a veritable Mt. Etna of turds on the balance sheet).  It does seem like the long drama may be reaching its denouement soon, however; BMPS has more than  halved in price since the Brexit vote, and barring a reverse split will soon reach the “Planck price” of the minimum possible increment.

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