Image: A European Union flag, left, and the Greek flag fly near the Parthenon temple in Athens, Greece © Getty Images

Let's say Monday's deal on rescuing Greece -- again -- holds together. Germany's Bundestag votes yes on the deal. Enough private holders of Greek debt decide to take the buyback offer to make the International Monetary Fund happy. Greece actually gets 42.5 billion euros -- $55.1 billion U.S. -- in December, enough to recapitalize Greek banks and to enable the Greek government to pay suppliers that haven't seen a drachma -- I mean a euro -- in eight months. (Find details of the deal on Bing.)

Then what? What does the Greek deal mean for financial markets?

And nearer to home, what does the Greek deal mean for your own portfolio?

Off center stage

Usually the answer to that question begins and ends with what's going to happen in Europe. Will Spain go bust or break up? Will Ireland continue its recovery? Will France join the PIIGS -- the troubled nations of Portugal, Ireland, Italy, Greece and Spain -- even as Greece drops out (to turn PIIGS into PIIFS)?

But let's call a ham a jamón and admit that Europe isn't exactly the center of the financial action anymore, even if it isn't in crisis. It's not, after all, as if anyone is expecting any economic growth out of the eurozone anytime soon. Greece, Spain, Italy and France are in recession and likely to stay that way for a while.

But that doesn't mean the Greek deal isn't extremely important to your portfolio. In fact, the Greek deal and the (temporary) move of the euro debt crisis from boil to simmer will be the defining event (or the defining nonevent, if you will) for global financial markets for the next few months. The Greek deal doesn't mean you want to invest in Europe, but it does point the way for where you do want to invest.

Jim Jubak

Jim Jubak

10 things we get from Greece

I can think of 10 ways the Greek deal will shape success and failure in global financial markets over the next few months:

1. The move of the euro debt crisis to the back burner will reduce the demand for safe-haven currencies such as the yen and the dollar. Oh, I don't expect the euro to soar -- everyone knows the Greek deal didn't really fix any of the eurozone's long-term problems. But a move up from the Nov. 28 close -- when one euro equaled $1.2891 U.S. -- to something like the $1.3084 of Sept. 18 or the $1.3214 of April 30 is certainly possible. BNP Paribas projects $1.33 for the euro by the end of 2012. That move isn't so big in itself, but any move up in the euro raises the possibility that traders selling euros to buy yen or dollars could see a loss. And that would be enough to restrain the flow into the yen and the dollar.

2. A modestly declining dollar is good news for the price of gold, copper, oil and other commodities priced in dollars. As the relative value of the dollar declines, the dollar-denominated price of these commodities climbs. Exactly how much the dollar might fall in the next few months will hinge on the degree of worry about the U.S. economy heading over a fiscal cliff.

3. A modestly declining yen would be good news for Japanese exporters who get killed when a rising yen makes Japanese goods more expensive to non-Japanese customers. The degree of weakness in the yen depends on how dysfunctional Japanese politics become as the opposition Liberal Democrats fight to bring down the troubled Democratic Party government.

4. By taking Europe's economic woes out of the spotlight, the Greek debt deal will shift attention to other global growth (or no-growth) stories. That increases the power of news on the U.S. fiscal cliff and on China's growth rate to move global financial markets. For an example, look to the whiplash in global markets on Nov. 28 as prices first dropped on pessimistic remarks from Senate Majority Leader Harry Reid, D-Nev., and then rallied on optimistic remarks from President Barack Obama and House Speaker John Boehner, R-Ohio. Remember how -- before euro crisis fatigue set in -- every remark from Germany's Angela Merkel or Italy's Mario Draghi moved the markets? Well, look for a replay, with a cast of characters from the United States and China taking over the stage.

5. Setting the eurozone crisis on simmer raises the stakes for negotiations over the U.S. fiscal cliff. While the euro was in full crisis, U.S. fiscal and monetary policy didn't have to be especially intelligent or effective for the dollar to strengthen and for the price of Treasurys to climb -- sending interest rates lower. All the United States had to be was less scary than the eurozone. But now that the fear factor in Europe has been set somewhat lower, the United States isn't such an obvious refuge. If U.S. politicians do something to raise the fear of another downgrade to the U.S. credit rating, beware arguments that a downgrade wouldn't be important, because last time -- when the United States got downgraded from AAA to AA -- Treasury prices went up and interest rates went down. But U.S. assets then had the safe-haven winds from the eurozone debt crisis at their back. If the eurozone hits some kind of stability for a while, U.S. financial assets wouldn't have the same degree of support from safe-haven buying after a downgrade.

6. A scenario that combines fear of a U.S. fiscal cliff with a gently declining (or worse) dollar plays out very differently for assets such as gold and commodities than the eurozone crisis did. Then, a wave of fear from the crisis led to a falling euro, a rising dollar and falling gold prices (because the dollar was climbing) on many days. That was certainly frustrating for anyone who had bought gold as a fear hedge. This time, though, a scenario would include a falling dollar, and gold and other fear hedges would actually pay off, in my opinion.

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