The following is an excerpt from CAROLYN COHN, Reuters | July 11, 2012 | thefiscaltimes.com |
Investors are criss-crossing the increasingly smudged line between emerging and developed markets as the euro zone crisis challenges traditional perceptions of a safe investment.
This blurring of distinctions was illustrated last month by index compiler MSCI’s surprise decision to review Greece’s stock market for downgrade to emerging market status, usually assigned to poorer countries offering lower liquidity and less open access to trade.
Although Greece remains a member of the euro zone, multiple credit rating downgrades, a debt restructuring, shrinking stock prices and the persistent risk it will be forced to exit the bloc and sharply devalue its currency have given it a risk profile similar to those of many developing countries.
Read more at: thefiscaltimes.com