Greece

What Greece Means for Investors

Greece

Like a slow-motion glacier melting into a rushing river, it would appear that the markets have been swept into a period of heightened global uncertainty driven by a long-looming Greek debt crisis.

If you’d like to understand the key factors involved in this economic impasse, The New York Times has been running “Greece’s Debt Crisis Explained,” updating it regularly as events unfold. If you’d like to know more, or you’re wondering whether there’s something that you, as an investor, should be doing in response to the Greek crisis, let’s talk. IFA is happy to speak with you in person, but here are some points to bear in mind, in the meantime.

First, as always, we don’t know what the future holds, for Greece or anywhere else. Even more to the point, we don’t know how the market will react to whatever does happen in Greece. This is why we advise those who already have a carefully planned, globally diversified portfolio in place, to keep that portfolio in place (unless your own long-term objectives or circumstances have changed). If you’ve not yet formed that carefully planned, globally diversified portfolio, then there’s no time like the present to give us a call to help you with that.

Others in the popular press or those who are transaction-based advisors might be tempting you to react to current events by buying this, selling that, or otherwise shifting around in reaction to the winds of change. They may be well-versed in financial economics, with impressive credentials and seemingly convincing reasons for why it’s time to act now. But if we eliminate the fancy trappings of their arguments, we’re left with the same essential evidence: It’s not good or bad news that sets future market pricing, it’s whether the next news is better or worse than the market has been expecting.

Peer into the future all you want, but an unknown reaction to an uncertain outcome is inherently unpredictable, no matter what we know now. Approach anyone who claims to believe otherwise – including your own inner doubts – in the same way you would consider accepting a Trojan Horse through the gates that secure your wealth. If we can help you send that horse packing, please be in touch.