One of the most important steps in becoming a successful investor is to learn ones strengths and weaknesses. I pride myself on being able to keep a level head when investors are panicking or getting over excited. The current crisis in Europe scares me and I am no longer playing with that strength. I get very scared when investors panic about Europe.
If the European dominoes were allowed to fall at least 5 sovereign nations and almost every bank in the World would likely go under causing a major depression. The German people are against anymore bailouts and Angela Merkel, the German Chancellor, has taken a lot of heat for the bailouts she has already agreed to. Sovereign bonds will be under renewed attack if forcible action is not agreed upon at tomorrows summit. Yet, Angela Merkel's hands are somewhat tied.
It is for these reasons, whether justified or unjustified, that I am scared. As a result I am unlikely to make large directional bets until there is a resolution to the crisis. I am currently positioned modestly net long.