Greek ‘No’ vote is buying opportunity
Greek voters might have ‘given the finger’ to Europe but they have opened up buying opportunities for investors, says Nigel Green, chief executive officer de Vere Group
Investors will be bracing themselves for increased volatility thanks to the Greek ‘no’ and will be gearing up for an important buying opportunity.
Greece has revolted and has essentially ‘given the finger’ to Europe in its historic vote.
With depressing predictability there will be extensive negotiations taking place right now behind the scenes between Athens and its creditors. I suspect that there will be a degree of debt relief for Greece, but Eurozone leaders will be aware of the considerable consequences of softening their stance too much.
In the wider scheme, it remains unclear what has been ultimately achieved at this stage – except more chaos.
This chaos will mean that investors will be braced for more turbulence and there could be a stock market sell-off over the coming days as investors seek perceived safe havens such as gilts and US treasuries.
Due to the broader implications of how Greece delivering a bloody nose to Europe affects other debt-shackled Eurozone countries’ ‘anti’ view of remaining in the Euro, there is likely to be a widespread uncertainty gripping the markets.
This predicted stockmarket sell-off and the resulting drop in prices will, of course, create an important buying opportunity, especially for investors with a longer-term perspective.
With negotiations potentially taking an extended period of time, the uncertainty is likely to be protracted, meaning the sell-off and buying opportunity could also last some time – unlike last week when markets bounced back quickly.
The buying opportunity will be seen as particularly attractive as much of the Eurozone is in recovering mode.
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