With a vote and subsequent negotiations in Greece, how concerned should investors
be?
What is contagion and why should we care?
How can we monitor risks in Europe over the next few weeks?
Historic Vote And Negotiations
With the referendum in Greece less than 24 hours away, the uncertainty and
fear for investors is building. From Reuters:
European partners say a 'No' vote will jeopardize Greece's membership
of the euro. Prime Minister Alexis Tsipras says they are bluffing, fearing
the fallout for Europe and the global economy. A 'Yes' vote may bring him
down, ushering in a new period of political instability for a country reeling
from five days of shuttered banks and rationed cash withdrawals.
What Do Investors Need To Know About Risk?
This week's stock market video takes a comprehensive look at investment risk
and Greece. The video uses facts and hard data to answer the questions:
- What are the markets telling us now about investment risk?
- How can we monitor risk as the situation evolves?
- Can we garner any clues from investor sentiment?
Polls Say It Should Be Close
Recent polls in Greece have shown a slight and significantly narrowing lead
by the "vote no" camp. From Bloomberg:
Greece's biggest newspapers called on readers to vote "Yes" in Sunday's
referendum that could determine whether the country stays in the euro. "Nai," the
Greek word for yes, was the headline of the three best-selling papers.
About 10 million Greeks head to the polls on July 5 in a plebiscite over
terms proposed by the country's creditors for unlocking emergency loans.
The government is campaigning on a "No" vote, with Prime Minister Alexis
Tsipras making almost daily live televised addresses to the nation in which
he asks voters to deny demands for more austerity. Tsipras says that the
vote is about austerity, and has nothing to do with Greece's place in the
euro area, which is secure.
