February 23, 2015
On Friday, Greece and its European creditors agreed to a four-month extension of the country's rescue package. The deal hinges on the European Central Bank and European Commission accepting Greece's proposed reform measures.
Greece is a country that has been struggling mightily. Effects of their shrinking economy and a 25% unemployment rate have strained its financial footing. Many investors fear that if this deal collapses it would push Greece closer to exiting the euro--something both the European Union and Greece have said they want to avoid.
This 4-month reprieve (pending approval this week) is seemingly kicking the can down the road. However, Wall Street responded favorably to the news--the Dow Jones Industrial Average closed Friday at a new all-time high. Despite this positive response, it will take time and stressful negotiations before Greece and its finances find stable footing.
Ethan Wade, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).