As Greece and Europe ponder the nature of the end game “the risk of misunderstanding is great,” wrote JP Morgan’s Kelly in a weekly outlook.
“The danger that neither side blinks will likely keep markets unsettled at least until mid-summer,” Kelly added. “For investors, a worst-case scenario in Greece hasn’t been priced into markets yet and signs that neither side is going to blink could easily lead to further equity market losses. However, rising earnings, rising dividends, falling stock prices and falling interest rates have left relative valuations extremely stretched, and any sign of compromise could lead to a sharp rally in risk assets.”
iShares S&P 500
Global X FTSE Greece 20 ETF (NYSEArca: GREK)
