The next euro domino is about to fall, although few people will notice. That's because it's not Spain, or Italy - but tiny Cyprus. Its banks are heavily exposed to Greece for obvious reasons, and time is running out to rescue them. It's embarrassing for the Cypriots though, because they assume the EU presidency on 1 July. Meanwhile, the arguments continue about the Spanish bank bail-out agreed at the weekend, which effectively sees countries like Italy and Spain itself, whose borrowing costs are more than 6 per cent for 10 years, lending money at 3 per cent to sort out Spanish banks. Not surprisingly, the markets don't regard this as the big bazooka and are starting to worry about Italy's position.
Now that raises an interesting question. Italy has lots of debt and not enough growth, but it doesn't have a big budget deficit, a property bubble or rotten banks. Yet its stock market looks like a war zone, having badly underperformed other European bourses. Does that make it a bargain? Dominic Picarda is starting to think it might, but Simon Thompson is worried about the implications for the bond market - and bonds always call the shots.
You can hear both Dominic and Simon speak at our London Investor Seminar next week, by the way - Dominic on the big picture, Simon on how he picks small-cap value shares. Places are limited and you can reserve yours for £25 by calling 0844 826 7349 or at www.icroadshow.co.uk.
Closer to home, there's a strategy that has yielded great investment returns even in volatile times. Buying the FTSE100's top risers every three months since June 2007 would have produced a gain of 46 per cent against an 18 per cent drop in the index. Algy Hall explains all and looks at the stocks for the coming quarter.
Do you have a share trading account with Barclays Stockbrokers? If so, you might have received some documentation about where your cash is held - don't sign it until you've read our article about how this change affects your deposit protection!
We all know (hopefully) about the age-old trade off between risk and reward. Here, Mr Bearbull explains how to apply Sharpe ratios, commonly used in the funds industry, to your share portfolio.
For a comprehensive summary of company announcements today and updates on key IC recommendations, see our company summary below or online here.
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