Baron Rothschild, an 18th century British nobleman and member of the Rothschild banking family, is credited with saying that “The time to buy is when there’s blood in the streets.”
Today’s Greece is a definition of just that. Well, maybe not quite yet. But the question remains, is it time to buy Greek stocks?
Robert Shiller thinks so: Robert Shiller’s shocking call: Buy Greek stocks!
The real answer is, NOT YET!!!
You don’t want to catch a falling knife here. As the chart above suggests, Greek market remains in a clearly defined down channel. Plus, there is no sign of a bottom and there are too many uncertainties. Finally, it would be ideal if the Greek market tests 2012 bottom at around 500. Which is 40% lower from today’s prices. Yet, given the market’s undervaluation level, this index should definately go on your “To Watch List”. In case of a technical turn.
By the way, Greek ETF trades under (GREK)
