In the short-term a Greece exit from the Eurozone could cause a severe panic with global stock markets selling off and a flight to quality.
Currently, markets are quite placid and seem to expect Greece to successfully negotiate a third bailout even though talks have broken off.
A Greek exit is one of those one-off events that one can’t plan for in terms of their investment strategy. It is an example of why I usually keep a cash balance and never have an allocation to stocks above a level that would make it difficult to maintain my lifestyle and meet my financial obligations if markets were to sell off 30% or more.
This audio lesson discuss the economic ramifications for Greece if the country left the Eurozone. In the intermediate to long-term a Greek exit would most likely be a positive development and an attractive investment opportunity.
The episode length is 13 minutes.
