Sunday, June 17, 2012
A Winning Ticket for the Greek Vote
June 17, 2012
For the first time since about the 5th century B.C., Greece is the most important country in the world.
Sunday's parliamentary election results will influence the near-term trajectory of financial markets, and perhaps provide hints into how voters in other decaying European Union nations will confront the failure of once-great ancient nations to thrive in the global economy.
The challenge for investors, here and abroad, is determining what will happen Monday when markets reopen. The options market already reflects the harsh reality that the election's outcome, regardless of the victor, will do little to calm global stock markets. Bearish put options on major stock indexes are expensive, indicating that investors are hedging their stock portfolios against sharp declines.