During this phase, stocks, as represented by the S&P 500 ETF (SPY), the euro, as represented in the Euro ETF (FXE), commodities, and commodity currencies such as Australian dollar, as seen in the Australian Dollar ETF (FXA), will be under downward pressure.
The U.S. dollar, as represented by the U.S. Dollar Index ETF (UUP), and bonds will be under upward pressure.
Gold in terms of the U.S. dollar may go up or down, but in terms of the euro will likely go up. I continue to think gold, as seen in the Gold ETF (GLD), as having the best risk/reward ratio in this environment.
Timing will be impossible to predict unless you have reliable inside info from the euro-zone political inner circle, and from many sides. Such is life in a market completely dependent on politics.
At the time of publication the author had holdings in gold.