Greek Deal Good! Or Bad? (GREK, NBG)
The fact that Greece is signing a deal to secure bailout funds to remain in the Euro without a ‘hard default’ on its debt is supposed to be good news. Every delay along the way has caused market uncertainty and…
The fact that Greece is signing a deal to secure bailout funds to remain in the Euro without a ‘hard default’ on its debt is supposed to be good news. Every delay along the way has caused market uncertainty and created more unease. So why is it that U.S. trading around Greek investing is down rather than up?
The Global X FTSE Greece 20 ETF (NYSE: GREK) is almost always suffering from thin trading volume, but the ETF is down by 5% at $18.42 today. The more actively traded proxy on Greece is the ADR of National Bank of Greece (NYSE: NBG) and its shares are down 5.4% at $3.65 on more than 1.1 million shares so far today.
As an outsider, why does the Greek situation feel so anti-climactic? Is this deal really a permanent situation? Greece votes in new politicians to replace previous politicians. Is it safe to assume that those running in the coming elections and in th years ahead will run on the platform that they have to abide by the same terms? This is a situation where laws of today and agreements of today might not matter in the future.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.