Good Morning and Happy Valentine’s Day (not just for US readers by the way). The big news facing markets on Tuesday will be the downgrade by Moody’s of a number of European nations including Italy, Spain and Portugal. Moody’s also warned that a Greek default is unlikely to be contained and could have negative implications on Portugal’s ability to tap long term lending facilities. In other words Greece is a big deal.
I have a lot of charts for you today and then last minute came across another study I’m excited to share regarding MUB the municipal bond