Wednesday, September 29, 2021, 00:00
Has the stock market correction started? With inflation persisting and interest rates soaring, it is difficult to justify today’s valuations. And this is something that investors know. What they did not know was the timing of the correction and the excuse that buyers would find to look for balances at lower price levels. However, the same conditions do not apply to the Greek stock market. In Athens it can be even better!
Let us not forget that the Greek stock market has not breathed a sigh of relief since the days of the great crisis. The meeting clock is actually stuck at Lehman Brothers! In the outside world people have overcome the mortgage crisis and lived days of new challenges. In Athens we lived the day of the marmot. Crisis – crisis – crisis. And now that the time has come for the correction for the big stock markets?
It would be absurd for Athens to stand out like a fly in the ointment and go against the flow. The other markets should fall and Athens should chase every day a new high. This does not mean, however, that at the end of the day the Greek and other stock markets will have followed the same path! We have reason to believe that the Greek stock market owes a good rally to its faithful.
It is characteristic that the agreements are made in the real economy in Greece in higher shipments than those of the Stock Exchange. This is because the buyers of the companies are foreigners and they price the companies with the data that exist in foreign stock exchanges. On the contrary, the Greek Stock Exchange looks like a mausoleum that has lost all this development. Does it make sense? Logical or irrational, which is true. Let us not expect, then, that the correction in Athens will be analogous to that of foreign markets. On the other hand, when buyers fall, foreign investors are not invested in stocks, even if there are no big opportunities ahead. At a time when liquidity is king, it takes even more patience to recognize diamonds in the mud.
All this shows that the coming period is not the best for capital increases. Especially since the forces of each stock market are specific and the Greek ones are relatively limited. After the increases and the bonds in banks and PPC, it is difficult in a period of correction for one of the investors to demand another billions of euros. It may be necessary, but it is certainly not the best option that no one offers to an investor in such an era. Moreover, the government must solve the issues of the Capital Market and find an incentive to attract investors. The market can offer solutions to the Greek economy, but even that still has a way of being done!
Thanasis Mavridis
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