Greece crisis: Here’s why you should not dump your stocks yet

Atlanta, July 1 (ANI): If you had been planning on dumping your stocks then you must give it another thought as a new analysis of the last 70 years of market shocks, including the 2010 Flash Crash and 9/11 terror attacks, has revealed that the U.S. stock market has faced these crises with great resilience and bounced back within a matter of days.

According to an S&P Capital IQ analysis, it took the stock market a median of just eight days to bottom out after a shock in the past, reported the CNN.

Sam Stovall, chief investment strategist at S&P Capital IQ, in a note to the clients said history had shown that prior market shocks had proven to be better opportunities to buy than bail.

They also warned that there was no guarantee that history will repeat itself this time as in the case of the 2008 collapse of Lehman Brothers, when the investors and world leaders underestimated the impact of a single event. The S&P 500 went down 4.7 percent after Lehman filed for bankruptcy and the market took 285 days to recover from that.

However, Greece does not seem to represent a threat to the global economy as much as it did few years ago. Most of the country’s debt is now held by other governments and the International Monetary Fund (IMF), not other banks. This helps to contain the consequences of its possible exit from the eurozone. (ANI)

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