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Matthew C Klein

Time to Bet on a Greekovery?

The government and the private sector think that Greece may finally be turning around. Are they right?

This may not seem like the best time to invest in Greece. The economy has shrunk by more than one-fifth since 2008 and, if private forecasters surveyed by Bloomberg are correct, will see a cumulative decline of 25 percent over seven years -- a catastrophe no rich country has experienced in peacetime since the Great Depression.

On the other hand, as Baron Rothschild put it, the best buying opportunities present themselves "when there is blood in the streets." Those who purchased 30-year Greek government bonds last July (such as Dan Loeb's Third Point) have quadrupled their money. Greek share prices have doubled over the past 12 months.