NEW YORK (TheStreet -- "All the trading on Egypt happened last week," says Ben Willis of Sunrise Securities.
That may be true for the stock jocks, but the Egyptian crisis is still rippling through the broad market. Professor Simon Johnson of MIT notes that the focus on Egypt has actually taken some of the pressure off of Europe. Indeed, Germany reported on Monday that its retail sales dropped unexpectedly in December, sparking worries over too much tightening hurting growth. But the European markets showed resilience as Italy's business confidence improved more than expected.
The Asian markets seem to be taking the brunt of the Egyptian worries. Both the Indian BSE Sensex 30 Index and the Philippine SE Index fell sharply. Professor Johnson says that for now the crisis does not look catastrophic as "Egypt is not that big a part of the global economy."
However he notes that the Suez Canal is an issue as far as oil and shipping are concerned. Moody's Investor Services cut the rating on Egypt's sovereign debt to negative as a result of the protests. Fitch also dropped its opinion on Egypt to negative from stable.Jason Pride, Director of Investment Strategy at Glenmede Wealth Management said "Geopolitical risk has historically led to temporary market weakness and that creates an opportunity for buyers." The key areas in the market that Egyptian turmoil is affecting are energy, gold, shipping, defense and commodities.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV