The Global X MSCI Greece ETF (NYSEArca: GREK), the lone exchange traded fund dedicated to Greek stocks, has been notoriously volatile over the past several years, but to its credit, GREK is up more than 37% over the past 90 days and some market observers believe now is the time to invest in Greece.
In March, Greek stocks slid to their lowest price since 1990 as growing concern over the global market, stalled bailout review and yields above 10% all helped push investors out of riskier assets, Bloomberg reports. However, equities there have been on a torrid pace since as Greek banks, previously a drain on GREK, recapitalize.
Banks represent close to a third of GREK’s weight. Earlier this month, GREK and Greek stocks rallied after Morgan Stanley upgraded Greek bank stocks to “overweight,” projecting the sector could rise 90% from current levels, reports Vikram Subheder for Reuters.
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Morgan Stanley upgraded Greece’s bank sector due to the area’s cheap valuations that did not reflect the compression in bond yields spreads that would result from a deal with Athens’ lenders.
In an interview with Yahoo Finance, former Greek Prime Minister George Papandreou emphasized that although times have been tough in Greece, the new government there is complying with creditors’ demands while noting “that banks in his country have been re-capitalized and plenty of companies now need investment to get on their feet.”
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