Greek urgent commentary

On Sunday, Greek voters rejected austerity the bail out proposal from its European creditors. Sunday’s referendum showed the number of Greeks rejecting a “cash for reforms” deal at 61.3%. The vote will spell short term volatility in the country’s banking sector as the capital controls remain in place. The “No” vote does not spell a “Grexit” but it does draw nearer the possibility. European markets have opened  down as much as 1.2% with haven assets such as the US dollar, Yen, US Treasury and German Bund yields all rallying as global investors move into to risk-off mode.  Whatever the outcome, we do not expect the current drama to derail the US and UK economy or, indeed, Europe itself.  We may use the short term volatility in the market to purchase equities if we believe the opportunity significantly outweighs the risks.