ETF for Greek recovery ?
Global X FTSE Greece 20 ETF (GREK)
This ETF pick is purely a contrarian play-and an admittedly risky one at that. GREK offers a way to invest in the Greek stock market, which has seen close to 90% of its value erased over the last few years as the country has been pushed to the brink of fiscal collapse. While the recent past has been catastrophic, there is opportunity to capture some material gains if Europe is able to pull Greece back from the brink. The developments in the ongoing debt saga have actually been quite positive in recent weeks, as private investors have agreed to haircuts on bond holdings and efforts to implement badly-needed cuts to government spending have gained some momentum [see also Three Long/Short Ideas For Euro Drama].
GREK is perhaps the best opportunity to live out the old Buffett mantra of "being greedy when others are fearful." At a time when most investors won't touch Greece with a ten foot pole, GREK offers a way to tap into a market that could be bottoming out. GREK is essentially a bet that Greece doesn't meet complete collapse in the new year, and can certainly be expected to exhibit a fair amount of volatility. For the risk tolerant crowd, we believe this ETF has some opportunity to surprise in 2012.