[Outbreak!] Greece and China Crisis

Greece calls for referendum on Euro membership. China stock exchange tumbled more than 10%.

Many of you should be aware of the recent development in the financial markets. Greece's talk with IMF and the Euro Central Bank has broken down and the country will now go to the polls to decide whether they are going to stay within the EU. The Greek government has imposed capital control and shut down all the banks to prevent money flowing out of Greece. The development will cause extreme volatility in the financial market, starting with a probable sharp drop in the stock markets around the world.

The Chinese stock market tumbled 7% last friday. Over the weekend, the Chinese central bank slashed the interest rates, probably as a reaction to the market crash. This morning, the chinese stock market was up, buoyed by the interest rate cut but the selling intensified by mid morning and the Chinese stock market is down 3% by lunch break.

Our portfolio is currently allocated mainly 80% in cash and USD, resulting in minimal effects by these 2 crisis. The good news is, USD advance by 1% and this will help to buffer against any fall in the stock market.

This may also be a good time to enter the financial markets if you have any spare cash.

Stay tune for new updates on important development in the twin crisis.