Greece: Time to Worry a Little or to Rejoy ?

Well, the markets are heading into panic mode, again. Brace yourself ! Lots of opportunities will probably arise, but wait a little, that dust settles down before chasing quality stocks at discounted prices, because right now, the market is still expensive and most quality stocks trade at a premium…

I just saw this chart :

Source: Barclays

Source: Barclays

Obviously the idea from Barclays’strategists is to say: « keep calm and look Greece hasn’t affected the rest of European equities yet. »

Says Barclays:

« Since the onset of ECB QE, European equities have de-coupled from developments in
the Greek stock market, while within the European market, so have the banks.

While these patterns may see a near-term reversal, we think the fundamental support coming from the Euro Area’s ongoing economic recovery should ultimately dominate.

Opinion polls indicate the importance of economic conditions to public attitudes towards the EU, and the economic recovery in the Euro Area has prompted a turnaround in attitudes towards EU membership in Portugal, Spain, Ireland and Italy.

Greece remains an outlier in this respect, and so the contagion effects of a Greek exit may not last long – provided the Euro Area economy continues its recovery path. »

That’s precisely what should be worrying you… or at least keep things in regular check. It is not because the past tells you something that it will continue in the future…

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