Good morning.
Today we take a look at the Greek market with a
Bull view. As much as this sounds like a joke, it’s not.
In December 2011, Global X launched one of
their new ETFs under the name of GLOBAL X FTSE GREECE 20 that replicates the
Athens stock market.
This ETF has attracted a lot of attention,
especially since it has experienced an increment of 20% this year 2012. This bull
rally has come after a long and brutal fall in the Greek equity market and
reflects the “buying interest” in the Global Stock Markets.
This does not mean that their debt problems are
over. By no means.
One of the negative aspects of this investment
tool is that, since it’s quite recent, it has only 3 million US Dollars in
assets and a very thing trading volume.
Many investors have various opinions on Greece.
You can see some our very cautious and some others are doing bargain hunting. This
ETF is very interesting for those who would like to take advantage of an
undervalued Green equity market. Since it’s a difficult market to access due to
its thing liquidity, GREK makes it easier for the bulls. Let us remember that
when this ETF was launched, the Athens stock market had already lost 90% of
value from its peak.
The Outlook of the Greek market is not the best
and those who are in a buying mood in this market obviously have to assume a
great deal of risk
After many downgrades on behalf of the rating
agencies, the wrong fiscal information sent to Brussels from Greece, their possible
default, the different rescue packages, and many other negative aspects, Greece
is not the best place where to put your money.
We believe that GREK is an interesting ETF,
more to use as a trading vehicle rather than a long term investment.
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