We know youre probably tired of hearing about Europes debt crisis, and frankly, we dont blame you.

At risk of sounding insensitive to the struggles of our European neighbors, were tired of it too. While there are benefits to globalization, ther e are also drawbacks as evidenced by the unprecedented level of negative influen ce Europes financial issues have had on us in recent years. As we look at last weeks activity, we can see the affect Europe is having yet aga in. While all three indexes ended the week in positive territory, recent gains c ame at lower-than-normal trading volumes as wary investors dipped their toes in the water, but were afraid to dive in.[1] Stocks finished in the red Friday on e xpectations that nine Eurozone nations would be downgraded by S&P (and they were shortly after trading hours), including AAA-rated France and Austria. Italy was lowered two notches to BBB+, dangerously close to junk bond levels that could m ake it even more difficult for the government to raise money.[2] Heres the report card[3]: France AAA to AA+ Austria AAA to AA+ Slovenia AA- to A+ Slovakia A+ to A Spain AA- to A Malta A to AItaly A to BBB+ Cyprus BBB to BB+ Portugal BBB- to BB While investors have been expecting this downgrade since S&P issued a warning la st month, the news is still a harsh reminder that Europe is not out of the woods . It is not yet clear how hard the downgrades will hit markets, but it is likely that we will continue to feel Europes influence until this situation is resolved . On the bright side, leaders from Germany, Italy, and France have been sounding upbeat about proposed solutions.[4] We hope their optimism will promptly transl ate into concrete actions. When any set of circumstances has the potential to affect your financial situati on, we are committed to monitoring it closely and to keeping you informed. Pleas e rest assured that the European debt crisis is no exception.