Ashmore's Dehn: Greece is 'extreme manifestation' of developed world failings

Greece is 'extreme manifestation' of developed world failings

Jan Dehn, head of research at Ashmore, says Greece is just the latest example of a developed economy unable to fix its key economic issues.

The recent events in Greece provide yet another warning about the real riskiness of investing in developed economies, proving how crises that ought to be local affairs, turn out to have ramifications in global markets.  Crises in developed markets often have effects in markets well beyond their own borders because the true risks of investing in developed economies are simply never adequately priced in. When crises then materialise, investors are caught off guard and resort to 'rules of thumb' trading that lead them to sell assets which most likely have nothing whatsoever to do with th...