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Sullivan's Market $ense

Brian B. Sullivan, CFA, President and Chief Investment Officer, Regions Investment Management

June 30, 2015

A column to help investors gain perspective on today's market noise

Four Reasons to Keep Calm about Greece

  1. Greece is over 5,000 miles away.  Distance makes a difference.  Just about anything we need from Greece was shipped a few weeks ago.  Most things they need from us were shipped weeks ago. 
  2. The economy of Greece is small.  It represents only 0.39% of the world economy.  It is bigger than Alabama but smaller than Georgia.  Therefore, some production loss or restraint of trade in Greece will not affect many.
  3. Greek Debt is in strong hands.  The debt that Greece is about to default on is mostly owned by the IMF.  Total debt sums to about $270 billion and is owned by the IMF, the ECB, Germany, France, Italy and other public entities.  Only 17% is in private hands.
  4. Time has been on our side.  Those who must be exposed to Greece and Greek debt have had several years to prepare for a default.

Many have been waiting for a buy opportunity and Greece may provide it, turning tragedy into comedy.  Stay tuned. 

(Source: Bloomberg)

(c) Regions Bank, Member FDIC. The foregoing represents the opinions of the author, Brian Sullivan, and not necessarily those of Regions Bank or Regions Investment Management, Inc. (RIM). RIM provides commentary to clients of Regions Bank, an affiliated company wholly owned by Regions Financial Corporation. The information contained in this report is based on sources believed to be reliable but is not guaranteed as to accuracy and does not purport to be a complete analysis of the security, company or industry involved. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This report is designed to provide commentary on market strategy and the opinions expressed reflect the judgment of the author as of the date of publication and are subject to change without notice. RIM assumes no responsibility or liability for any loss that may directly or indirectly result from the use of such information by you or any other person. Investment advisory services are offered through RIM, a Registered Investment Adviser. RIM is wholly owned by RFC Financial Services Holding LLC, which in turn, is a wholly owned subsidiary of Regions Financial Corporation.

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