The markets are showing remarkable resilience in the face of bad news and global unrest. This coming week will be another test, because of the uncertainty surrounding what's happening in Ireland, the fallout from insider trading investigations, and a somewhat oversold market.

Why should insider trading affect the market? Because institutional investors are going to try and get out of any fund they're worried about meeting part of that investigation. The result will be massive redemptions and a lot of selling.  It is certainly something to watch.

Let's Look at World Markets.

 

It has been a tough two weeks for global markets.  Most major indices are down; and, yet, that is not so bad considering the news about sovereign debt, war, and global cooperation.

 

Who Is Bailing Out Ireland?

Expect the questions about who will bail out Ireland to weigh on the markets.  Here is a graphic that explains the situation (click on it for a bigger version).

 

What About the Euro?

According to the Financial Times, BlackRock's founder Larry Fink, founder of BlackRock, the world’s largest money manager, believes that the euro will fall sharply as a result of the escalating eurozone crisis and turmoil in financial markets.

In an interview with the Financial Times, Fink predicts that the single currency, battered this week by the fear that the fall-out from Ireland’s debt problems will spread to other countries including Portugal and Spain, will fall to $1.20 against the dollar, a slide of nearly 10 per cent.

What Level of Holiday Sales Will Santa Bring?

Another driver worth watching will be how the market responds to holiday sales.  Black Friday is one thing; the issue is whether consumers will spend real money throughout the season.