Like Rain on Your Wedding Day

Alanis Morissette will probably disagree but in my opinion, rain on your wedding day is hardly ironic. It could be sad, annoying, or, in the event of an indoor wedding, a non-issue. Similarly, a fly in your chardonnay is simply off putting and in the grand scheme of things, not that big of a deal. What is ironic, however, is Greece's debt rating getting downgraded for the fourth time this year, and Greek equity and bond markets cheering the news.

Greek sovereign debt was downgraded twice this year by Fitch (Oct 22 and again Dec 08) and once by S&P (Dec 15). But it was Moody's downgrade on Dec. 22 that sent Greek markets into a "celebratory" rally. It's really all about perception: Moody's downgraded Greek debt by only one notch as opposed to the two-notch downgrade the market feared. Moody's also commented that near-term crisis is unlikely, which helped ease investors' fears.