The situation in Greece has gotten a fair amount of attention in recent news. While a tentative agreement with the EU has been reached, the heightened level of uncertainty is the exact kind of market risk we expect as investors, whether we like it or not. It is the kind of risk that drives future expected market returns. It also explains why we always urge our clients to maintain appropriately diversified portfolios, so they don’t have to take too big of a hit whenever various market factors experience their inevitable turns at adversity.
In this short video, Weston Wellington of Dimensional offers useful perspectives on the financial crisis in Greece and how investors should consider reacting.