Greek and the NO vote and what that means for investors

Now we know the majority went for the No, unsatisfyingly no real change is being seen. But what I would like to know is what does this mean for people looking to profit from the crisis. If we look at the crisis through a filter of the current economic climate and bear in mind that some investors are claiming that the two hottest markets at the moment are Japan and Europe, will we have to accept that the Greek crisis will shift investors away from Europe?

What sort of effect will the next step of protracted discussions have on the Euro and should we be short selling the Euro or investing in the Dollar? How does the Greek market react to the No vote and what does THAT mean for investors?

Many are of the opinion that as it is mainly institutional investors who are holding onto Greek debt there will not be a huge change in the markets. But are we now seeing with lulls in stock market growth globally. And how does what is happening in Greece overshadow what is happening in China now, or is it in fact the other way around?

Before the referendum the FT offered this advice:

  • Big events always create noise and opportunities – Don’t go in with an extreme weighting.
  • The euro is likely to weaken in the medium to long term
  • Attractive long run entry points in European stocks for those who can take the currency risk
  • “Grexit” threat – can we really ride through its wake, as the market suspects.

So yes, benefiting from the weaker euro seems the best way to go at the moment. But will this reflect on the volatility of the currency and will this volatility deter investors from Europe, or as has been suggested, is Europe still one of the hottest long term markets?

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