Avatar Investment Management's June commentary focuses on European elections, gold, Japan and finally China. "The European sovereign debt crisis moved into even higher gear as it became clear that, when put to a vote, very few people are in favor of austerity, the policy of choice within the European leadership councils. The highest profile election, of course, was in Greece in April. In that country, the electorate clearly bucked against the budget measures adopted by the prior government. Those measures were, essentially, imposed by the European leaders who, basically, hold the checkbook allowing Greece to meet its debt obligations. The Greek election, importantly, was not an isolated push back. The national elections held in France resulted in a Socialist candidate defeating one of the leaders in this crisis. Local elections throughout Europe, even including the countries leading the austerity drive, have served to weaken the hands of the European elite. This appears to be a political process that can take some time as it unfolds."