The 8% drop Friday in Shanghai Composite set the tone for many of the markets on Friday though some were able to buck the trend. The Shanghai is now down over 20% from the high just made earlier this month. With just a few days left in the quarter many opinions are being voiced on where the market will be going in July and in the 3rd quarter. The sentiment was quite a bit different in two of the other key global markets even though the ups and down in Greece's debt negotiations did cause an increase in volatility. The German Dax Index did not seem troubled over a possible default by Greece as it closed the week up almost 4%. The Nikkei 225 also continues to act strong as it made a new multi-year high last week gaining 2.6% Carl Icahn closed out his large wining position in Netflix (NFLX) for a reported $2 billion profit and then commented that the "market was extremely overheated". This was followed by comments later in the week by well known investor Jeremy Grantham who said that " most stock markets in the world are overpriced — and the bond market is more overpriced that at any time in history". Though he does not think either market is in "bubbleland territory" yet he does think they are eventually headed that way because of Federal Reserve policy. For the first time since 2013 it has been a down quarter for most bond holders and US Treasuries are slightly negative for the year.
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