Around the world people can only watch with awe at the sheer incompetence of Euro politicians as they try to avoid the inevitability of a "common treasury" if they wish to save the Euro. Will we get a smaller eurozone, or a "2 speed" euro zone, or no euro zone at all?
The answer to the above is that nobody knows and this is the dilemma for us investors. On the one hand we have opportunities everywhere as quality companies are being offered to us at great prices, low p/e with high yields, Director buying, companies, unhappy at the share price are buying in there own shares to cancel them, it is all going on. On the other hand current risks are unquantifiable and if you cannot assess a risk you are not in a position to make a judgement.
On that basis perhaps the best strategy is to stay in cash/bonds and stand aside until the forward view is more clear.