When it comes to making money, one of the long-time leaders has been The Goldman Sachs Group, Inc. (NYSE/GS). Many people been having critical of Goldman Sachs due to its influence in nations around the world, which can lead to favorable terms for the company. Regardless of one’s opinion about the firm, its actions can be a good indicator of underlying trends.
Goldman Sachs is currently turning down the role of lead stock underwriter for firms located in the southern eurozone nations. If this firm that has been so successful at making money is so worried about the eurozone that it’s avoiding certain areas completely, then this is quite a negative sign. I would highly suggest following its lead and avoiding companies with exposure to the weaker eurozone nations.
There is much talk in the newspapers about a new deal for Greece, and attempts to keep the eurozone together. If the eurozone really was this close to a deal and this far away from next financial crisis, I’d think that Goldman Sachs would be jumping at the chance to be part of any underwriting deals. But because it would be liable to losses if the eurozone financial crisis were to worsen, and since it has far more access to information than you or me, its decision to avoid the region altogether is one in which I see a large amount of legitimacy and credence.
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