The last month has been custom-made for the financial press. Greece potentially voting to exit the Euro? China’s stock market in a free-fall despite heavy government intervention? Puerto Rico’s Governor pronouncing the island is in a debt death spiral? It’d probably be hard to create more sensational, yet ultimately unusable, news than this for investors. Continue reading
Greece’s economic troubles have been in the headlines for nearly six years now, with its government debt first downgraded in December of 2009.1
But now things are getting serious quickly. With a 1.5 billion Euro default looming, Prime Minister Alexis Tsipras has called for a July 5 national referendum on restructuring proposals from the nation’s creditors. In the meantime, he has closed the banks and the stock market and imposed capital control, restricting ATM withdrawals to 60 Euros per day. With a possible “No” vote on the referendum, Greece seems closer than ever before to taking the unprecedented step of exiting the Euro Zone.
What does this mean for investors? Continue reading