- Is Europe really United ?
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Markets were yet again disappointed by the joint announcement of French President Sarkozy and German Chancellor Angela Merkel. Nothing concrete was proposed as a real solution to the European crisis. I don't know feasible this greater economic integration is.

European politicians failed to find the drastic solution that the market was hoping for. To some degree European politicians are once again either paralyzed or in denial. A transaction tax is far from being a solution. It is far from easy to implement.
As a result of this weak political European leadership, and their disconnection from the markets, investors sentiment in Europe continues to deteriorate.

- Eurobond no more..but what about Growth ?
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As the Eurobond was ruled out by both France and Germany I read about an idea to create an Euro bond without them and just with 10 of the European monetary union members. I think that this idea is unrealistic and that a Euro bond, unless something drastic happens, it is not in the cards.

The big questions is how even European stronger economies are going to sustain their growth with the rest of Europe in a quasi recession. It is also not clear how is Europe going to re-ignite the growth engine? with higher taxes and budget cuts?

- Swiss Franc, Gold and Platinum
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Through this unclarity on what is really next for Europe investors continue the fear trade with the Swiss Francs, while no longer at all time highs, still at very high levels vs the Euro and the USD. It seems that some investors feel that some of the Euro members might be forced out - at least for a certain period- and even negative interest rates in Swiss Francs do not discourage investors looking for a safe heaven.

In terms of investment strategy I recommend Gold, that I think will reach 1900-2000 by year end, but also Platinum that it is close to production cost and hence it has a limited downside and conservative sectorial allocation to equities like Consumer Staples and healthcare.