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If you have been wondering what specifically has been one of the main culprits in the stock market devaluation in recent days, look no further than to a group of countries in Europe affectionately known as the P.I.I.G.S. The countries, which many believe are the weaker components of the Euro-zone, include Portugal, Ireland, Italy, Greece and Spain.

There has been mounting concern that these countries will continue to struggle to control their own budget deficits. Such a struggle could lead to rating downgrades or even, in the most extreme case, defaults on interest payments related to the sovereign debt that each of these countries have outstanding. Such a credit action could send shivers through the global capital markets especially at a time when frozen credit markets are just beginning to thaw.

Based on the information available to us, we, at Hennion & Walsh, do not believe that this negative domino effect will come to fruition but do believe and understand the concern that many investors have when the topic of a potential sovereign default arises.