Over the weekend, Greek citizens rejected a proposal from international creditors for managing the country’s external debt.
Stock market prices aren’t always “right,” but again, like last week, market indicators suggest the possibility of significant economic contagion is relatively constrained.
Today, as the S&P 500 declined less than one-half of one percent, looking at the stock prices for a hypothetical portfolio of 20 economically-sensitive companies, only a modest majority posted declines greater than the S&P 500, and the average percentage decline was in line with the S&P 500 as a whole.
In turn, an index of US bank stocks didn’t decline significantly more than the S&P 500.
Again, stock prices aren’t always right, but they are always worth watching.