While many investors are avoiding Greece like the plague, top strategist Mark Mobius says he’s buying stocks from the troubled country.
“Greece will remain in the eurozone. There is no question,” Mobius told Greek daily Naftemporiki, according to MarketWatch. “The stock market is cheap, and we are buyers.”
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Mobius is particularly high on the banking sector because of valuations. “I think the emphasis on renegotiating the strict conditions imposed on the country will be positive, as it will stimulate optimism,” Mobius said. “However, the ability of Greece to renegotiate the debt and repayment terms of the institutions will be very challenging.”
Mobius also says lenders need to ease up on Greece. “I believe […] that continued cost-cutting will not help Greece recover from its current state. What is needed, in my opinion, is more investment,” he said.