I haven’t written in a long time because, really, there wasn’t much to write about. One thing I’ve learned, though, is that prolonged periods of boredom are often followed by pretty wild turmoil.
What caught my eye is the following chart here:
It’s a picture of Crobex dating all the way back to 1998. What is quite stunning is that there is a support line that has been holding steady ever since then. We’ve hit that trend line once again, which means that some pretty wild swings could be up ahead. My opinion is that it is more likely to go up than down, because of two things. First is the EU QE which is likely to increase even further. The second is the fact that Croatia is slowly moving out of the recession phase.
Now, although I’m not a great fan of the economy’s overall health, EU and USA’s as well as Croatia’s, but we have already seen what massive amount of printed money can do to the stock market. My prediction is that similar thing will happen in the EU, and Croatia as well.
Alternatively, the index could actually penetrate the support in case Greece talks fail and all hell breaks loose. But as things stand now, it looks as if the deal will be reached.