This month’s Portuguese bailout sent a shiver through the spine of European investors, but should they be worried? Joe McGrath investigates

First published:
What Investment

Date of publication:
1 May 2011

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News that Portugal has been forced to hold out the begging bowl to the European Union and International Monetary Fund for an estimated €80 million bailout has left investors in no doubt about the fragility of the Euro.

Although there has been no shortage of fund managers saying things are not as bad as they seem, investors looking for a home for new money are being told by trading analysts to avoid Euro assets completely.

But is this a little melodramatic? Well, it depends who you talk to.

There is broad agreement that the length of the financial crisis in the European area will certainly take longer to recovery than previously thought, but opinion differs as to whether or not the Euro will survive in its current form.

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