However bad you think a given development is, it is worth remembering that the productive step is to put your focus in a positive place. Real businesses were built during the Great Depression. People made money during the financial crisis. Despite myriad predictions to the contrary, the sun still rises every day in the east.
Infrastructure is seen as an attractive proposition, not only because of its (in some sectors) double-digit returns in a low-yield environment but also because it offers diversification opportunities coupled with reliable earnings and consistent cash flows. Infrastructure can also be used for liability matching and inflation hedging (given that inflation tends to be built into the revenue stream of projects).
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.
Gustavo Teruel, CFA, recently spoke with Martin Wolf of the Financial Times about his latest book, recent developments in the eurozone, and the global investing outlook more generally.
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