Wrong! It actually revolves around Greece, as the headlines this morning clearly indicate:

"Shares little changed amid Greek drama"

"Markets set for turmoil as Greece raises stakes"

"Equities mixed as Greece impasse persists"

"Debt talks may be defining moment for Greece"

"Greek debt crisis: Tsipras in intensive talks with creditors"

Why doesn't anybody say "We've had enough!" and kick the Greeks out of the Eurozone?

There's a 95%* probability that if the Australian government was pouring so many billions of debt into the black hole that is Greece's financial situation, the elected party would have been dragged out of parliament house and dispatched with.

(* statistics are made up)

Our S&P/ASX 200 (INDEXASX: XJO) has been on a bit of a bumpy ride lately, it's true. But what are the real impacts going to be on the Australian stock market if Greece completely collapses?

Very little is going to change. Most of our companies with Euro earnings like Westfield Corp Ltd (ASX: WFD), Macquarie Atlas Roads Limited (ASX: MQA) and Domino's Pizza Enterprises Ltd. (ASX: DMP) make their money elsewhere in the Eurozone. Does Greece really make a material contribution to the financial wellbeing of the Eurozone or any of our companies with Euro earnings?

Given that the situation is such a shambles, it's hard to argue that it does.

As I noted in recent articles, there are several very appealing ways to play a Greek Eurozone exit through Exchange Traded Funds like ISHEUROPE CDI 1:1 (ASX: IEU) and BetaShares Euro ETF (ASX: EEU) which represent Euro stocks and the Euro currency itself, respectively.

The worst case scenario I can see is that Greece exits the Eurozone, which begins a round of uncertainty in currency investors who abandon the Euro for currencies like the Yen, US Dollar, and Australian Dollar.

This will put upwards pressure on the AUD at a time when we least need it, reducing the profitability of companies like Santos Ltd (ASX: STO) and Rio Tinto Limited (ASX: RIO), who are already grappling with reduced commodity prices.

A 'Grexit' might also inspire struggling countries like Spain and Italy to exit the Eurozone rather than comply with uncomfortable monetary reforms designed to grow their economies – putting further downward pressure on the Euro.

I wouldn't be surprised to see a widespread Euro stock sell-off in the wake of either event, and I think this would represent an excellent time for investors to consider geographically diversifying their portfolio.

Also put me down on record as saying now is a fantastic time to invest in certain sectors of the Greek and Spanish economies. Low wages and high unemployment mean high-quality staff can be trained and retained for cheap, and if you're in sectors like export manufacturing or tourism, demand for your product won't be much affected.

As ever there are two sides to the story, and one man's disaster is another's opportunity – the key is preparation.

How will YOU handle a 'Grexit'?

The post Is your portfolio prepared for a Grexit? appeared first on The Motley Fool Australia.

I do – distinctly – because I'd just bought a bunch of cheap stocks before watching the S&P/ASX 200 (INDEXASX:XJO) plunge 25% from nearly 5000 to below 4000. Ouch. At the time the Greek crisis was the only show in town, plastered across all the headlines.

Four to five years later, when it looks like Greece could really exit the Eurozone for good, the Australian market is just ho-hum.

We've seen it all before, after all.

But the main German and French indices dropped 2% each in a single day yesterday, and there'll be plenty more where that came from if Greece and its creditors can't agree on a funding plan which – according to Fairfax media – needs to be agreed this week at the latest in order to give everyone involved time to vote on the arrangement.

Foreign markets may not hold a lot of appeal for some Australian investors, many of whom are still coming to terms with owning Australian companies and find unknown foreign companies alien and confusing.

I don't own any foreign-listed companies myself, but a potential 'Grexit' is too great an opportunity to pass up. There are a number of ways to play the situation, and it's possible to gain 100% Eurozone exposure from the safety of the ASX.

The first opportunity I'm eyeing off is the Australian iShares Europe Exchange Traded Fund (ETF), also known as ISHEUROPE CDI 1:1 (ASX:IEU). This ETF tracks 350 stocks diversified by region and is a great way to catch a widespread fall in Eurozone markets.

IEU dropped as low as AU$32 in the wake of the last Greek crisis and while I don't expect it to go as low now, prices of $40 or so ($64 currently) look like an attractive long-term entry point. More importantly, Euro nations are far more robust thanks to the economic recovery of Spain, Ireland, and Italy, which reduces risk substantially.

A more direct way to gain pure Euro currency exposure without the equities is the BetaShares Euro ETF (ASX: EEU), which is designed to mirror the AUD-EUR currency relationship. Theoretically if the Euro falls 10% against the AUD, this ETF should fall too. Of course this is an investment to buy AFTER a Greek exit happens.

The iShares ETF currently has a management fee of 0.6% per annum, while the BetaShares Euro ETF charges 0.45%.

Alternatively if you're not feeling quite that adventurous you can try owning Australian shares that have significant earnings in the Eurozone. It's less likely that these shares will fall in the event of a Greek dramas but even so; Brambles Limited (ASX: BXB) earns one third of its revenue in the Eurozone. Westfield Corp Ltd (ASX: WFD) earns a similar and growing percentage, while Domino's Pizza Enterprises Ltd. (ASX: DMP) is also expanding in the region.

This time around I'm not expecting Greek problems to have a major long-term impact on Australian markets. But the possibility of a crash is no doubt on the minds of many investors who recall the GFC, and look at the lofty valuations of many ASX-listed companies with some discomfort.

The post 2 ASX-listed ways to play a Greek Eurozone exit appeared first on The Motley Fool Australia.

The politics and macroeconomics of the situation are outside the scope of this article, but I think readers can safely draw two conclusions:

• Eurozone nations want to keep Greece in the Eurozone
• Greece will be economically better off in the Eurozone

A Greek exit from the Eurozone and reversion to using the Drachma currency does not appear to be in anyone's best interests.

However with radical leftists in power and limited popular support for economic reforms, maybe, just maybe, Greece will decide to bite the bullet and default on its debts and/or exit the Eurozone.

The impact for markets will be profound in the short term, and this is where you and I come in.

It appears a given that Greece can't fund all of its payments to the IMF this month, and the way I see it, either a deal will be reached with creditors, Greece will default on a payment, or Greece will elect to leave the Eurozone. Should there be a default or withdrawal, here's a brief sketch of what could happen:

• Gold will rise

Gold always rises during volatility, and if you currently hold companies like Newcrest Mining Limited (ASX: NCM) you might expect to see a rise in value over the coming weeks.

I wouldn't rush out to buy gold because rising interest rates in the US will put downwards pressure on it, and gold is ultimately a commodity that can't grow your profits organically.

• The Euro will fall

Euro nations are all-in on Greece, with Germany in particular carrying massive amounts of Greek debt on its shoulders. Without having to take on the risks and leverage associated with foreign exchange (forex) investing, you can gain relatively direct exposure to the AUD-EUR relationship through the BetaShares Euro ETF (ASX: EEU).

This Exchange Traded Fund (ETF) is designed to mirror the currency relationship; if the Euro rises 10% against the AUD, this ETF should rise 10% too. Of course this is an investment to buy after the Euro falls against the AUD, because the value of this ETF will fall too.

• Euro shares will fall

Not only will the Euro fall, but Eurozone markets will take a beating. An increasing number of local brokers are offering international trades, but a good place to start is the Australian iShares Europe ETF, or ISHEUROPE CDI 1:1 (ASX: IEU). This might sound all 'French' to you, pardon the pun, but IEU tracks a collection of 350 stocks diversified by region and is a great way to catch a widespread fall in Euro markets.

Assuming the Euro region avoids complete economic catastrophe, which it should, investors could generally expect the Eurozone to rebound in the next few years, and both the IEU and EEU ETFs are a great way to gain that exposure.

Alternatively if you're not feeling quite that adventurous, there are a number of great ASX-listed shares that have exposure to earnings in the region. Among the biggest are shopping centre guru Westfield Corp Ltd (ASX: WFD), Domino's Pizza Enterprises Ltd. (ASX: DMP), and infrastructure stock Macquarie Atlas Roads Limited (ASX: MQA).

The post Will gold rise if Greece exits the Eurozone? appeared first on The Motley Fool Australia.