Here’s how to make money from Syriza’s big Greek election win
By Sara Sjolin
Published: Jan 26, 2015 12:33 p.m. ET
Greek stocks and bonds might be your best bet, analysts say
Alexis Tsipras is happy after winning the election, and so could you be if you make the right investment call
LONDON (MarketWatch) — There’s a new Greek sheriff in town and he could shake things up in the eurozone.
Far-left, anti-austerity Syriza leader and winner of Sunday’s Greek election Alexis Tsipras has promised to renegotiate Greece’s bailout terms with the country’s troika of international lenders: the International Monetary Fund; the European Central Bank; and the European Commission.
Investors across Europe will hold their collective breath while Tsipras does it.
Will he succeed? And if he does, what does that mean for other countries that have agreed to strict bailout conditions? Or if he doesn’t succeed, is that goodbye to Greece as a eurozone member? In any case, the euro EURUSD, +0.62% is likely to take a further beating, analysts predict, creating valuable opportunities for investors.
“The euro will weaken — perhaps to parity with the dollar — over the next six months as investors seek ‘safe havens’ as other populist parties in the eurozone are likely to rise in the opinion polls and echo Syriza with their demands to end austerity,” said Tom Elliott, international investment strategist at deVere Group, in a note. “Investors can expect Greek-led market volatility for at least six months until a Syriza-led government is better understood.”
Dollar boom: From a currency perspective, that means investors will draw away from the euro and move into the dollar. If the shared currency does fall to parity with the buck, it means the dollar will have risen by almost 13% from current levels.
On Monday, the euro, however, strengthened against the dollar to trade at $1.1255 from $1.1208 late Friday in New York, which was more seen as an “overdue” rebound after last week’s QE-fueled selloff, than a reaction to the Greek election result.
German exporters: The sliding euro is excellent news for Europe’s exporters that will be able to sell their goods at lower prices outside the euro bloc, such as the U.S., the U.K. and Asia. Read: 15 European companies benefiting from a weak euro
“Indeed, one of the ironies of the euro crisis is that the more that Greece looks likely to cause problems for the single currency, the more Germany and the core economies benefit from resulting euro weakness,” deVere Group’s Elliot said.
En dan nog de gedaalde olieprijs die ´stabiel´ blijft erbij.....
Wat een mazzel !