With the recent headlines coming out of Greece this week, Brinker Capital’s Senior Investment Manager and International Strategist, Stuart Quint, shares a few quick points.
- Greek elections on June 18 raise the risk of Greek default sooner rather than later, leading to some uncertainty. However, risks of Greece have been known for a while by the markets. The question is whether we see bank deposit runs out of other weaker European economies (Spain, Italy) and into stronger ones.
- European Central Bank liquidity measures and hopeful, but inconsistent, fiscal progress in Ireland, Portugal, and Italy could cushion the downside and show commitment to keeping the Euro around in the near term.
- Economic growth and European equities, primarily, are likely to take the pain until we get further clarity on the issues listed above. U.S. equities and other risk assets will also be affected in the near term due to concerns on slower global growth, although the U.S. is less affected by global growth than other markets.