Opportunities in Greece

With Greece desiring to abandon euro to devalue the debt they owe, there arises a huge concern for other European nations trying to save the economy.

Surprisingly, there are people willing to invest on Greece, as they believe “things are dynamic and rapidly changing.” Politically and ethically, this is a huge risk as endless attempts are being made to rescue Greece from current crisis.

As major financial institutions in Europe become short of capital and multifarious transactions are being made(meaning rapid cash flow), private equity will have the funds to invest and play, and they have opportunities to make a fortune in a collapsing economy. In addition, banks may have to reduce their balance sheet to hurriedly find a method to substitute the capital that was put to call debt in Greece.

One way investors can make money is to invest in emerging market hedge funds.  Experts state that “emerging markets start off in a better place if there is a downturn in the global economy and a reversal in commodity prices”.

Tremendous amount of money is flowing into emerging markets and the currencies. This risky yet potentially profitable investment will be an interesting topic to observe for investment companies over the world.

 

 

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