It is not the intention of this post to state an opinion as to what may or may not happen to the European single currency as a consequence of the current debt issues. Fitch is of the opinion that the Euro cannot be rescued or maintained in its current guise. That may, or may not, be the case.
What we believe is important is that all investors should be fully aware of all options available and then, depending upon his or her own circumstances, consider implementation of these options in preparation of the worst occurring that is; a rapid devaluation in the Euro, against other major currencies and assets.
In simple terms you have three options. 1: Do nothing 2: Diversify some of your Euro holdings into alternative currencies 3: Divest all Euro holdings/deposits and reinvest/reallocate into alternative currencies / assets
We would suggest that whether you should adopt strategy 1,2 or 3 should be the product of a detailed discussion with your financial adviser.
Just to say that if you are not living in the Euro area and you are unlikely to spend Euros in the near future it probably makes sense to at least be considering option 2.