We face another week of much news centering around Greece and the European Union this week. Building on our June 19th comments to you regarding Greek and European investing, Jeff Saut, Raymond James Investment Strategist offers these observations this morning: “Over the weekend, there were Greek tweets about long lines at ATMs as the Greek tragedy approaches. This morning Greeks awaken to shuttered banks, capital controls, closed ATMs and rumors of conspiracies as debt talks collapse.” That said, we recognize that the Greek/EU talks continue.
We want to reiterate that many analysts believe that the EU can survive a “Greexit,” albeit with substantial stock market volatility. We see the Greek/EU negotiation going down to the wire as both sides attempt to “stand firm” as long as possible. While I feel for the pain and uncertainty of the Greeks – whether they stay with the EU or move toward exiting the EU via defaulting on their debt – I also believe that it’s important that this question of national debt of all EU member nations be addressed and be resolved one way or another. The EU must pull closer together in terms of its collective debt, tax, and employment policies if it is to ultimately survive and thrive.
As your financial professionals, we continue to focus on strategies that support your goals. That includes focusing on strong companies within the EU, both in terms of holding positions through the uncertainty and potentially buying additional shares if bargain pricing materializes.
Please let us know your questions and comments. We appreciate hearing from you.