Seeking Alpha

adaminawon's  Instablog

adaminawon
Send Message
  • Finally! A Greek ETF For The Market Scouts 0 comments
    May 13, 2013 8:44 AM

    Greece is a significant member and trade partner of the European Union. A well-established infrastructure is in place and private investors have come forth to carry on the development in the various areas of infrastructure growth that majorly began with the Olympic Game's fervour held in the year 2004 in Athens.

    This nation has given rise to a specialised technological and industrial sector; this is complemented with a greatly skilled, educated and talented labour / work force that offer services at competitive costs for its expanding economy.

    A strengthening trade relation with the Asian continent and Russia presenting impressive (import and export) trade volume figures since some years.

    The strict nature of economic policy implemented in the year 2009 (to combat the inflating government debt and very low revenues in form of taxes) led to a negative growth curve for the country's GDP.

    Though, the Greek economy is still troubled with recession and unemployment figures soar among all age groups and especially in the youth segment of the population, nevertheless the reform in terms of consolidation and structural changes post 2009 has brought about relief for the investors and various businesses. In the period of last two years its GDP has touched an astoundingly low level (it reached around 5 % and this has beaten the United States' gloomiest of all records in the last few years).

    The Greek nation is contemplating to terminate its euro zone membership and to adopt back its own independent currency. Therefore, the future of its stock market is unsure and could take an unpredicted turn yet portfolio managers have advocated these stocks as they are available at cheap valuations and offer plentiful safety cushion for the investors even if the nation's currency falls down.

    Last year the Greek market outstripped the United States' equities and this was achieved in a troubled state of affairs for the former country. This could possibly be a sustainable trend for the Athens Index but there are others who believe that the long term prospects are still negative and weak.

    Beginning of the year 2013 has not been too kind for the GREEK ETF that has performed very slowly when compared to funds from other weak countries like Italy and Spain.

    Positive news for the Greece ETF is the surge in the stock prices of the nation's top banks namely Euro bank and National bank of Greece and since the Financial sector makes up 16 % of this broader investment, an autonomous environment for the banks or a cash stimulus from bigger EU banks may spell out gains even in the near term.

    Greek ETF is the sole product available to western participants and investments must be viewed with a long outlook. The low valuations are a definite winner for the fund investors as it seems that the bottom is achieved.

    To invest or not to Invest in Greek Companies is thought mulled over by many foreign investors today. Recent surge in the Greek stock market led by the national banks of the country is a testimony of investor's trust in the long term Athenian prosperity and at these low prices a lure of possible multi bagger gains cannot be ignored.

Back To adaminawon's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.