Greece’s Referendum No Vote – What it Means

The Greeks voted “No” Sunday in a referendum on whether to accept the bailout terms of the last program. I’m not completely shocked by the result though after examining how the decision was presented to the Greek people. The future is going to be complex, as the midnight hour is upon us now and all the most frightening scenarios are gaining weight. Contagion will begin to rear its ugly head now, as the indebted governments of the periphery see selfish opportunity for their own debt restructuring, and so support the Greeks. Meanwhile, the austere of the EU will believe they have good reason to hold course so as to not set precedent. The ECB is painted into a corner, and its legal obligations may dictate its decisions. For Greece and Europe, the next few days and weeks will be pivotal with high risk present for security investment in the near-term. For U.S. markets and investors, any severe declines likely make for good buying opportunity, but our future is foretold by the start of tightening monetary policy. If stocks do not move much on Greece, still avoid stocks at least into the first rate hike or two (see previous articles). See our full report on Greece's No Vote Referendum here.

Sector Security	Monday’s Start
Vanguard FTSE Europe (NYES: VGK)	-1.8%
WisdomTree Europe Hedged Equity (NYSE: HEDJ)	-2.2%
CurrencyShares Euro Trust (NYSE: FXE)	-0.6%
Global X FTSE Greece 20 ETF (NYSE: GREK)	-9.7%
iShares MSCI Germany (NYSE: EWG)	-2.4%
iShares MSCI Italy (NYSE:  EWI)	-3.9%

US Equities	Monday’s Start
SPDR S&P 500 (NYSE: SPY)	-0.7%
SPDR Dow Jones (NYSE: DIA)	-0.8%
PowerShares QQQ (Nasdaq: QQQ)	-0.6%
iShares Russell 2000 (NYSE: IWM)	-0.7%
iPath S&P 500 VIX ST Futures (NYSE: VXX)	+4.0%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.