The Truth About Greece

The Greek economy and in particular their debt crisis has been dominating the media as of late. Undoubtedly, this has led to increased investor uncertainty and perhaps even thoughts of market timing have entered their minds.  I hope today’s post will give you the calm and confidence you’ll need to stay the course and remain a superstar investor.

Here are some interesting facts about Greece:

Mid-January 2010: The media begins its barrage on the Greece and their debt situation. S&P 500 hovers around 1150.

April 23, 2010: Greek government requests IMF bailout package. S&P500 closes at 1217.

April 27, 2010: S&P cuts Greece’s debt rating to Junk status. S&P500 closes at 1184.

July 22, 2011: Greece’s economy is collapsing and their default on their debt is almost a certainty. S&P500 is sitting around 1340.

Hopefully what you’ll take away from this is that the market, which is smarter than everyone in the world (because it IS everyone in the world) has decided that despite Greece’s troubles–along with the EU’s–that businesses will continue forward and that the end of the world as we know it has been put on hold…again.

Oh I almost forgot to mention–Greece has been in sovereign default during 105 of the last 200 years.  Spread that “news” around at your next cocktail party.

To your clarity, direction, and confidence,

John Choi

 

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