Greece Puts Europe “On Sale”
It’s all about Greece…
On Monday, the German press reported that European governments would push for capital controls in Greece if there was no deal reached this week on debt repayments.
This would stop Greeks from yanking money out of their banks and taking it out of the country.
Tomorrow, Greek negotiators will meet with Eurogroup finance ministers to agree to a proposal for how Greece will pay back its creditors.
As it stands, Athens must come up with €1.5 billion ($1.7 billion) by the end of the month… and another €3.5 billion ($4 billion) byJuly 20.
As tensions mount, European stocks have been taking it on the chin.
As you can see below, the EuroStoxx 50 Index – Europe’s Dow – is down 10% since April.
The S&P 500 hasn’t seen a correction of this magnitude in almost four years.
On the bright side, this has taken the forward price-to-earnings (P/E) ratio of the EuroStoxx 50 down to 15 versus 17.6 for the S&P 500.