Here is a one year chart of Portugal’s 5 year credit default swap provided by bloomberg.

I’ve been monitoring credit default swaps for free through bloomberg using links from here:(http://www.distressedvolatility.com/2010/07/nice-to-see-cds-quotes-credit-default.html) Something is brewing on the horizon. Credit Default Swaps are a great way to monitor credit risk of both companies and countries. Well, Portugal’s Credit Default Swaps are soaring today. They have reached a year high and have surpassed the previous high reached in August when the market was crashing. The stock market has continued to rise on low volume and false hopes but the fact of the matter is there is still great risk in Europe and Portugal’s credit default swaps are waiving a bright red flag. I stress that my readers play it safe in this market and continue to hold safe assets until Europe gets its house in order.

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