Grexit (Greek Exit) – the ups and downs

The victory of the “No” vote in Greece over the weekend is causing considerable concern amongst the western world. And volatility in Word Share Markets. The doubt and uncertainty will stumble along for a while longer yet.

But should it?

Greece forms less than 0.25% of the world GDP;

1% of the European GDP;

Almost 80% of Greek government debt is owed to public institutions (such as the IMF, ECB & Eurozone governments);

There have been many significant reforms in Portugal, Italy, Ireland and Spain (along with Greece affectionately know as the PIIGS), since the onset of the European sovereign debt crisis;

The Eurozone have been in preparation for a possible default or exit from the Euro have been occurring over the last five years;

Strengthened monetary-transmission mechanisms across the Eurozone makes it less likely for them to standby and watch Greece Government undo all the hard work done.

Australian banks have been lessening their reliance on overseas debt since the Global Financial Crisis “GFC” – we have a much lower exposure now than at the height of the GFC;

The strategies that SWM Finance Matters employs will stand you in good stead throughout the uncertainty and volatility.

Please ask us about our Asset Allocation and Investment Philosophies – they have been developed based upon 3 decades of research and experience. They have stood the test of time.


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