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World Stock market investment star of the next 5 years?

Posted by jdavis on February 19, 2015

What EU country is never out of the news right now?

It is often talked of as the first to exit the €uro currency.  It may do so but we would be surprised if it does.

It just had a General Election and the people voted in, in massive numbers, a Left Wing party apparently sticking it to the leaders of the EU project?  A Party that wants to spend spend spend.

Which EU country's Finance Minister (like UK Chancellor) is arguably the most famous economist in the World right now.  His name is Varoufakis and he used to lecture on economics at the University of Essex.

This country's stock market collapsed c 95% to the lows in 2012 - under prior 'Status Quo' governments.  In the last c 3 years the market had soared nearly 200% from that low point and is now back to 'just' 60% higher than 2012.

If you haven't got where it is yet, it is Greece.

Here's the 8 year chart:

That's interesting enough for us to start looking at but even more interesting is the market fell c 40% in the lead up to the General Election last month.  This is strange as what did the investors think was going to happen?  That Greece would somehow implode?  Er, it already did implode.  It's already got 30% unemployment and 60% under 25s unemployment.  How much worse can it get?  As far as we can tell the economy already hit rock bottom and so has the stock market, more or less.

1 year chart

Development of Greek GDP, last few years

Will it be volatile?  Absolutely?  Can it rocket?  From 10c in the €?  It certainly can.  Can it rise for years?  Well, given it fell for years, the answer is yes it can.

We'll come back in a year or two and tell you how it went?  But the opportunity is there now.  What is your wealth manager saying about Greece?  In our experience - nothing.  Or steer clear!  Good oh...  ;)


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