What’s the prospect for the Greek stock market if Greece leaves the Euro.
SocGen’s Patrick Legland and Daniel Fermon have produced this clever chart.
It compares the Athens market to the Argtine market, during its crisis.
Basically, Argentina was essentially in the same situation as Greece, except the Greek peso was pegged to the dollar.
When Argentina de-pegged, its equity market surged when priced in pesos, and fell when priced in dollars.
If Greece “de-pegs” expect the market to rally when priced in drachmas, and tank when priced in Euros.