So Greece is falling apart and chinese tech bubble is bursting. The headlines are everywhere and to me it just sounds like a fire sale is about to start. I am looking out to pick up greek stocks (via GREK ETF) after they (hopefully) exit the euro and the reversion to drachma is announced. There is bound to be tremendous volatility and market crashes but that’s exactly the time when you can pick up companies substantially below book value.
Even if the greek economy doesn’t recover or goes into a recession, the ultra low prices for a basket of stocks, diversified via an an ETF will ensure that even if some of those companies were to survive (survival is enough, they don’t even need to be profitable!) the market will eventually price them slightly better than the fire sale prices.
As for china, I had warned a few weeks back about ......