U.S. investors should keep their exposure to European equity markets, despite Greece’s ongoing debt woes, one strategist said. ‘It’s our view that a default seems relatively likely, but Greece will stay in the euro,’ said David Lebovitz, global markets strategist at J.P. Morgan Funds. ‘The risk of a disorderly Grexit doesn’t seem to be in the cards. If there was some weakness in European equity markets because of the headlines generated from Greece, we definitely encourage investors to think of that more as a buying opportunity, and less of an indication that they should be getting out [of European stocks.]’ If Greece fails to make its $1.7 billion payment to the International Monetary Fund by June 30, the nation faces default, according to IMF head Christine Lagarde, Bloomberg News noted. ‘It’s important to keep in mind that we’ve been going through this saga with Greece for five years, he said. ‘If there is a default, it will be difficult to to get to the point of a Grexit, since most of the population is happy being part of the European Union and I think that forces the government to play nice with the policy makers in Europe.’ Though Lebovitz said Greece is sparking plenty of headline risk across Europe, which could result in some attractive buying opportunities. ‘I would encourage investors to buy the dip in places like Spain, Ireland – economies that have really come back and healed since the [2011] European debt crisis, so any weakness there would definitely be an opportunity for investment.’
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