Trouble in Europe: 10 stocks to buy when Greece defaults
April 19, 2012, 4:18 pm
Greece Default Is Inevitable
Buy These Stocks
When That Happens
European finance ministers are trying to pull the wool over the eyes of the world.
I’m not fooled, and I hope you won’t be either.
You see, the EU ministers want us to believe that Spain will not need a bailout, and that the Eurozone is solid. Unfortunately for them, the yield on Spanish bonds crossed the 6% mark this week, which is a pretty reliable indicator of trouble ahead.
While today’s successful bond auction has bought Spain some time, the country still has a serious debt problem. And on top of that, the Spanish government is battling a housing market crisis, an economy in recession and 24% unemployment. Those are not problems that will be solved quickly or easily.
In fact, worries about Europe’s ongoing debt crisis are fueling the volatility we’ve seen on Wall Street since the start of the second quarter. Everyone is focused on Spain as a hot spot right now, but Greece remains the bigger issue.
As I’ve been saying for some time, the odds of Greece defaulting on its debt—indeed of a larger Eurozone collapse—are still quite high. The latest $172 billion bailout did nothing to change that stark reality.
And should Greece default, or worse, should an unexpected Eurozone crisis rock European stocks, I want you to be prepared to swoop in and buy the handful of stocks I’m going to tell you about in a moment.
But first, back to a Greek default. Consider:
- Unemployment in Greece is at record highs, doubling in the last 4 years;
- The country’s food costs are soaring;
- Approximately one-fourth of all Greek business have shut down due to the weak economy;
- Civil unrest and street rioting have reached feverish levels as the average citizen’s quality of life has drastically deteriorated;
- Greece’s economy is in a deep, widespread recession (now in its fifth year and counting).
And while that $172 billion aid package will allow Greece to make the interest payments on its out-of-control national debt for perhaps a few months longer, the truth is that it does absolutely nothing to address the country’s underlying economic problems.
What Greece needs—and what is sorely missing in this latest deal—is an aggressive plan to spur growth in its battered economy.
What the country is getting instead is a Band-Aid on a head injury… and more severe austerity measures to boot!
At this point, it seems all but inevitable that Greece will ultimately default on its national debt, which could send the entire Eurozone into a tailspin. Make no mistake—in the wake of a Greek default, all bets are off in Portugal, Spain, Italy and other already-fragile European economies.
So while my heart goes out to the people of Greece and other European countries who will be hurt by this crisis, I have to confess that the investor in me is wringing my hands in anticipation.
That’s because if the Eurozone does indeed take a big tumble, panic will surely set in. And that is the best time to make money—big, big money—in the stock market! That’s exactly what I did after the 1987 stock market crash, and boy did it pay off.
I began my career as a Wall Street broker the day before the 1987 crash. My 2nd day on the job was quite a doozy, as you can imagine. The crash occurred, people were panicking, and the brokerage house was in utter chaos. But I kept my wits about me, figured out which stocks to buy in that chaotic environment…and as a result of the stocks I bought on that day, I became a self-made millionaire by the time I was 30!
So, yes, the current Eurozone crisis is just the type of investing opportunity I look for—and seize. I hope you will, too. And to help you profit from a Eurozone panic, I’ve created a shopping list for you.
Keep this list I’m about to give you handy, and when Greece defaults—or the Eurozone falters—scoop up these 10 stocks:
- Credit Suisse (CS)
- Telefonica (TEF)
- Sanofi Aventis (SNY)
- Barclays (BCS)
- Siemens (SI)
- SAP (SAP)
- National Grid (NGG)
- Vodafone Group (VOD)
- Total SA (TOT)
- GlaxoSmithKline (GSK)
All are rock-solid stocks that will get absolutely hammered should there be a major European crisis. And we will make an absolute fortune on them from the eventual rebound that will follow!
Yours for game-changing profits,