Thread: How To Profit From Greek Elections

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  1. #1 How To Profit From Greek Elections 
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    I am always looking for fairly conservative ways to profit from whatever is going on. I recently closed out some short positions and went long, which has paid off so far.

    But I am not nearly sophisticated enough to buy individual European stocks. That's why the following is of interest:
    How to profit from the Greek election

    As of this writing, the wire reports are that the New Democracy party may be able to form a governing coalition. If this turns out to be true, there is a conservative way to make money from Greek elections.

    The New Democracy party is the pro-bailout party and is committed to honoring the agreements Greece made. If this party succeeds, there will be more stability. Read: Pro-bailout party leads in Greek election tally

    The conservative way that I favor is to buy a basket of stocks in the largest European multi-national firms such as Siemens SI +2.70% , Royal Dutch Shell RDS.A +2.39% , Novartis NVS +0.17% , and Glaxo SmithKline GSK -0.53% .

    Fortunately, there is an exchange-traded fund that makes the task easy. We have taken a long position in SPD STOXX Europe 50 FEU +1.78% .

    This ETF represents some of Europe's largest multi-national firms.

    FEU Is Cheap

    The P/E ratio is 9.18. The price/book is 1.49. Further the ETF provides a respectable dividend yield of 4.66%.
    http://www.marketwatch.com/story/how...ion-2012-06-17
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  2. #2  
    Senior Member TVDOC's Avatar
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    Short the Euro......

    doc
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  3. #3  
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    Quote Originally Posted by Starbuck View Post
    I am always looking for fairly conservative ways to profit from whatever is going on. I recently closed out some short positions and went long, which has paid off so far.

    But I am not nearly sophisticated enough to buy individual European stocks. That's why the following is of interest:

    http://www.marketwatch.com/story/how...ion-2012-06-17
    Quote Originally Posted by TVDOC View Post
    Short the Euro......

    doc
    I'm too ignert, ignit, uh, I don't get this stuff enough to understand any of this. I will continue to thrive in my underachievement.
    Last edited by AmPat; 06-18-2012 at 02:02 PM.
    Education without values, as useful as it is, seems rather to make man a more clever devil.
    C. S. Lewis
    Do not ever say that the desire to "do good" by force is a good motive. Neither power-lust nor stupidity are good motives. (Are you listening Barry)?:mad:
    Ayn Rand
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  4. #4  
    Senior Member TVDOC's Avatar
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    Quote Originally Posted by AmPat View Post
    I'm too ignert, ignit, uh, I don't get this stuff enough to understand any of this. I will continue to thrive in my underachievement.
    A "short" is a contract that essentially bets that the value of the commodity is going to go down over the term of the contract. If that happens you make money because you replace the commodity at the end with the same amount at lower cost, and pocket the difference.

    If the commodity goes up......you're hosed, and have to make up the difference in cash........

    doc
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