We are part of the world economy and we do get caught up in world events that don’t really have a direct effect on us. We aren’t exposed to Greek debt, we have minimal trade and Greece only makes up 2% of the Euro economy. While events are having a huge impact on people living there, they really should have no impact on the prices or earnings of Australian businesses such as JB HiFi , Westpac or Coles. It is the sentiment or mood that causes worry and the concern of what ‘could happen’ that is driving volatility.
Most experts suggest that the likely outcome will be that some sort of resolution will be reached. If this happens, current volatility is likely to reduce.
And in the meantime, pour yourself a big Ouzo and ignore the tabloid press and TV. They will be doing their best to talk it up the crisis.
Remember, panic = ratings.