Greece and the Eurozone
Wednesday, January 28, 2015
While Syriza has won the Greek election, a Grexit is not the most likely outcome. Even if Greece were to exit the Euro, peripheral Europe is now in far better shape than in 2010-12 and Eurozone defence mechanisms are stronger. While the Euro likely has more downside, Eurozone shares are attractive reflecting relatively cheap valuations, the likelihood of stronger growth ahead and very easy ECB monetary conditions.
Greece back in the headlines after Syriza’s election win, it’s natural to wonder whether we are going to see a rerun of the Eurozone crisis that roiled global financial markets in 2010-2012. However, much has changed since 2012. This note looks at the main issues.