If The IMF Believes In Greece, Should Investors?
Signs of life for Greece’s economy and ability to stay in the European Union are piling up of late. Greece’s parliament recently approved austerity measures required to unlock its next wave of rescue funds from its creditors. The International Monetary Fund has called for “unconditional” debt relief for the country as far out as the year 2040.
Investors looking to cash in on potential improvement in the Greek economy may consider the Global X MSCI Greece ETF (Global X Funds (NYSE: GREK)). Any investment in Greece carries with it a significant degree of risk, and GREK is no exception, but this ETF looks to have some momentum behind it.
In May, it made a sustained move above both its 20 and 50 moving averages, and last week it rose above its 200 day moving average. Shares gained 37 percent since March 1 as of Monday’s close and have been trading with above average volume.
Moving averages are used by traders to spot trends in a stock’s share price movement. When traders see a shorter-term average crossing over a longer-term average, it can be a signal that an uptrend is occurring.
At time of writing, GREK was down 1.99 percent at $8.85.
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