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#1 How To Profit From Greek Elections
06-18-2012, 12:22 AM
- Join Date
- Mar 2010
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%.
06-18-2012, 01:44 PM
Short the Euro......
06-18-2012, 02:49 PM
- Join Date
- Jun 2005
- Woodland Park, Colorado, United States
Last edited by AmPat; 06-18-2012 at 03:02 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:
06-18-2012, 03:07 PM
If the commodity goes up......you're hosed, and have to make up the difference in cash........
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