Weekend Reads for Global Investors: What’s Next for Greece?

One of the benefits of working in the investment management industry is that you’ll hardly ever get bored. Not even on a perfect summer weekend.

By the time you read this, we should know if the European finance ministers reached a deal Thursday to address the Greece situation. Either way, most believe that the “Greek tragedy” is unlikely to have a happy ending.

And this situation bears watching because the end game will have significant implications for Greece, Europe, and the rest of the world. The Financial Times has put together a calendar of upcoming events over the next four weeks: “Greek Debt Crisis: Key Dates on the Road to a Possible Grexit.” Dimitra DeFotis, for Barron’s, has written about “3 Reasons Greece Could Default without Grexit,” discussing some potential scenarios under which Greece may not have to drop out of the eurozone.

On a seemingly brighter note, Bloomberg reported that “China’s Stock Market Value Tops $10 Trillion for First Time” — not nearly as large as the US market but twice the size of Japan’s. Of course this number gyrates with the stock market’s every move. And if you have been invested in China’s mostly domestically traded shares in recent weeks, you know what I am talking about. To put it simply, you have to be comfortable putting this on autopilot and be able to handle 5% daily moves, up or down, on a regular basis. I suppose traders are loving this — if they can get on the right side of the trade, that is.

Janet Yellen chaired the widely watched US Federal Reserve meeting this week. The market seems happy that the Fed continued to signal a slow pace for rate hikes, possibly just one for 2015. Economic growth has been positive but probably “nothing to write home about.” Inflation has been well under control, so there does not seem to be any urgency in raising rates. What the Fed has been doing seems merely setting up the expectation for rising rates in the minds of market participants.

The Barron’s article mentioned above quoted Christopher Pissarides, a Nobel laureate, at the end. I met with Pissarides last fall when he was in Hong Kong to discuss the labor market research for which he earned so many accolades. The conversation unavoidably turned to Europe, since that’s where he has spent most of his time. I clearly recall his frustrations about the policy stance of European politicians and central bankers. “You have deflationary monetary policy, you have deflationary fiscal policy, all on top of a worldwide depression,” he remarked. “How are you going to get out of it?”

Indeed, how are they going to get out of it? I guess we’ll soon find out, at least in the case of Greece.

Below is a list of links from the paragraphs above as well as some of the other interesting reads I have come across in recent weeks. Happy reading and enjoy the weekend.

Markets

• “Greek Debt Crisis: Key Dates on the Road to a Possible Grexit” (Financial Times)
• “3 Reasons Greece Could Default without Grexit” (Barron’s)
• “China’s Stock Market Value Tops $10 Trillion for First Time” (Bloomberg)
• “Fed Flags Slow Pace for Rate Hikes” (Wall Street Journal)

Investing

• Paul Smith, president and CEO of CFA Institute, spoke at the AsianInvestor Asian Investment Summit this May. “What Long-Term Value Can We Bring to Society?” (Enterprising Investor)
• “Investors, It’s Not Your Fault You Underperform,” says a Morgan Stanley strategist. (CNBC)
• “The Biggest Fintech Funding Rounds So Far This Year — 26 over $50 Million” (Forbes)
• “13 Practical Ideas That Have Helped Me Make Better Decisions” (Farnam Street)
• “A Dozen Things I’ve Learned from Mario Gabelli about Investing and Business” (25iq)

Emerging Markets

• “Huawei’s Culture Is the Key to Its Success” (Harvard Business Review)
• “Wealth Adviser: Investors Flee Emerging Markets” (Wall Street Journal)
• We have talked and written about this subject here and elsewhere. Read this well-articulated take from a Shanghai-based strategy consultant: “How Emerging Markets Can Finally Arrive” (Forbes)
• The long-awaited China love did not come from MSCI. But the Saudis opened up their market to the rest of the world last week: “Saudi Stock Market Opens to Foreign Investors — Recap” (Wall Street Journal)

Asia

• “Japan Inc Faces Stormy AGMs in Governance Shake-Up” (Reuters)
• “In $8 billion Samsung Bid, Some Koreans Break Ranks to Side with Foreign Activist” (Reuters)
• “Huge Growth in China’s Money Funds Poses Risk” (CNBC)

The Soft Side of Business

• “Five Idea-Related Leadership Mistakes You Can’t Afford to Make” (Forbes)
• A simple and to-the-point post from a leadership blog: “8 Ways to Tell if You’re a Good Boss or a Bad Boss” (Leading with Trust)
• “Conquering Digital Distraction” (Harvard Business Review)
• “5 Ways Introverts Can Make a Great First Impression” (Inc.)
• “This Personality Trait Predicts Your Tendency to Lie and Cheat” (Business Insider)
• “8 Body Language Tips For Job Seekers” (Fast Company)

And Now for Some Readings Truly for the Weekend . . .

• “How to Have More Charisma Instantly” — it’s simpler than you think. (Inc.)
• “Why You Procrastinate: 9 Things You Should Know ” (Psychology Today)
• “10 Smart Things to Do Every Night” (Daring to Live Fully)
• “The Science of Eating” — I’ve been wondering why it is so hard to lose that extra pound . . . (Huffington Post)

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All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the author’s employer.