“The week ahead should be dominated by the continuing crisis in Greece and an update on the Federal Reserve’s view of monetary policy, as ‘QE2’ winds down,” said David Kelly, chief market strategist at JP Morgan Funds, referring to the Fed’s second round of quantitative easing designed to boost the economy.
“The good news for markets is that each time over the last year when European leaders have stared into the face of a default by a Eurozone member, they have correctly concluded that default would be far more costly and disruptive than further loans,” Kelly said.
“The bad news is that they have failed to grasp that what Greece really needs is a grant rather than a loan and that Europe will not be able to get beyond this crisis until it has done what is needed to put Greece and other budget-strapped nations on a path to economic growth,” he added.
iShares Russell 2000
