Profiting from the Euro Crisis
I suggest watching Bloomberg at the European opening at 3 am (EST) if you are new to understanding the Euro crisis and how to profit from it.
A crisis in one man's eye, is an opportunity in another's. The question is, are you willing to take that risk and profit from the crisis, or will you allow that opportunity pass you? The Euro crisis is creating great opportunities to short sell various US and European financials that have exposure to sovereign debt.
PIIGS, (Portugal, Italy, Ireland, Greece, and Spain) copied the sub-prime mortgage housing strategy that the US banks used to target minorities, and then pushed the debt to the US Treasury Department by securitizing these illegal mortgages.
Time to profit from it.
Here are two ways:
Profiting from Crashing Italy:
At 3 am (EST) European markets are opening. In the US we have the NYSE. In Italy, it is the Italian MIB, (See: http://www.bloomberg.com/quote /SPMIB:IND) today it was down almost 400 pts, and closed at 14,213.17. I was looking at it this morning and posted on Facebook that EWI was going to be a short since MIB was collapsing. The EWI is an ETF that is on the NYSE, that opens at 9:30 am, more than 5 hours later, given us a time advantage.
Short EWI:
EWI was a high profit short at the opening. As long as Italy's MIB Index keeps in the negative triple numbers- keep shorting EWI.
http://www.google.com/finance? q=ewi#
Profiting from Crashing Spain:
Spain has an index called the Ibex, (http://www.bloomberg.com/quot e/IBEX:IND) and Spain is experiencing the same problems as Italy, because of a sovereign debt problem. The Ibex is collapsing because of the Euro crisis, just like Italy and the other PIIGS.
Short EWP:
EWP was a high profit short at the opening. As long as Spain's IBEX keeps in the negative triple numbers- keep shorting EWP.
David Kiehlmeier
