Referendum

Referendum - the buzz word and black swan of yesterday.

Make an analogy of Iceland and Greece when both are in deep shit.

Iceland once agreed with IMF and UK on a bailout agreement and its parliament voted for it, when it was handed to the President to sign, he calls for a referendum and the result is history.  Greece is a bit different as it wasn't even voted yet in parliament, but the PM already calls for referendum.

If Greece does go down the way of Iceland, expect a messy exit of Greece from Euroland and financial markets to correct much deeper.

Revisit to hsi recent low is not improbable if Greece continue down the road of no return.

Unload half your stocks and buy call options of the stock or hsi index as a hedge in case it is resolved in a more friendly manner.