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Should we be worried about the Greek Debt Crisis?
For the twelve-month period ending June 30, 2011, equity investors around the world enjoyed the equivalent of blue skies and bright sunshine while the economic news was partly cloudy at best. Equity returns within your Portfolios, before fund charges, ranged from 19.26% (Emerging Markets) to 30.62% (UK Smaller Companies) - source: Dimensional Fund Advisors.
If someone had told us a year ago that global markets would stage such a broad-based rally, we would have been inclined to think that trends in employment, housing, and financial distress were about to take a pronounced turn for the better. It seems hard to argue they have done anything of the sort. Somehow, despite gloomy financial page news that keeps repeating itself, equity prices marched substantially higher.
The moral of the story? Investors should be sceptical of their ability to predict future events (Greek Debt Crisis etc) and even more sceptical of their ability to predict how other investors will react to them.
If you are still concerned please do not worry in silence. Remember we are more than happy to chat things through with you either over the phone or if you prefer over a coffee.
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