BY SHAH GILANI, Capital Waves Strategist, Money Morning
Everybody loves a rally.
After European leaders announced a plan to stem Eurozone and global panic over Greece's potential default and shore up capital at beleaguered banks, positive contagion is lifting stock markets from one end of the planet to the other.
What's not to love?
Well, the plan itself, for one thing. It's so full of holes that unless it's tightened-up, detailed, actually agreed to, financed and executed, it's nothing but an outline in the sand.
Don't get me wrong, it's a start. But, the question investors have to ask themselves is, if the plan isn't written in stone and if they've missed this rally, is now the time to jump back into equities?
The answer is yes and no.
Understanding where the risks are and how to position yourself to profit on the heels of this new global positivity requires looking at the European bailout plan as proposed, and measuring it against the realities constantly unfolding in the future.
Let's start with the plan and measure it against what you should be watching in the days, weeks, and months ahead."
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