The uncertainty in regards to Greece was a major factor concerning the market last week.
As I write this, we now know that Greece has votes “NO” the austerity measures required by their creditors.
The vote, in fact, has been positive for our markets, as the real question last week was what Greece was going to do. Now we know, the market can try to determine what will happen from here.
The real unknown is if Greece defaults on its debts, which investments will be affected. The unknown is why so many commentators have been referring to it as a GFC type event.
The issue with the GFC was we could not calculate the fall out, as there was no way to determine what investments would be affected.
However, Greece seems to be a different story where we at least have a better understanding of the companies and investments that may be affected by failing to pay their debts.
However, this sort of uncertainty means that the markets will be volatile for the coming weeks and perhaps months.
Greece is heading into new territory. As the world watches on the next couple of days will be very interesting to see if a deal can be struck.
In the meantime, we will be looking for bargains.