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Why exit is an option for Germany.


A recent article by Martin Wolf in the Financial Times explores the ‘Germany exiting the Euro‘ theme. His conclusion is that while a German ‘Exit is indeed an option‘, exercise is unlikely. For opportunist investors, it’s the market perception of a German exit that could create a buy Europe investments opportunity.

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Readers may have seen the Financial Times article by Martin Wolf, ‘Why exit is an option for Germany‘. (Reprinted in the Globe and Mail). Wolf concludes that while Germany’s ‘Exit is indeed an option’, it won’t likely be exercised.

It’s the market disruption that could occur that is of interest to investors.

For additional context see my blog post of July 23/12 ‘When Germany leaves the Euro‘.

In preparation for a Euro / Europe buying opportunity, see my blog post of August 1/12. ‘ How to add Euro and Europe Exposure‘.

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Next time? More Risk Management.
Doug Cronk CFA is Manager, Investments for a Canadian Pension Plan
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