Markets Down on Greek News

The stock market is down today on more disappointing news from Greece. Negotiations broke down over the weekend, and there’s been a run on Greek banks. Everyone there wants to get euros in hand, and fast.

It’s gotten so bad that the government stepped in and closed all banks along with their stock market. They’ve also decided to have a referendum this Sunday on whether the country should accept austerity in exchange for more aid. Shares in the National Bank of Greece are down 20% today.

I still think some deal will come about but I’m not certain. I think the IMF and European Union are fed up with Greece and their far-left government.

The fallout in our market isn’t too dramatic. Cullen Roche noted that Greece is looking at defaulting on a $1.6 billion loan. That’s Walmart’s revenue over 30 hours. So let’s put this all in some perspective.

The S&P 500 is currently down 1.14% but there’s a big spread underneath the surface. The Low-Volatility Index is down 0.82% while the High Beta sector is down 1.71%. That’s a big gap.

Posted by on June 29th, 2015 at 11:25 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.