For some time, I have been saying with an air of certainty, that Germany and France would not let Greece default. My mistake with this is my air of certainty. I have argued repeatedly that one should present conclusions as probable outcomes, not as certain fact. So, as a human, I humbly suggest that I now see a possible Greek default because political opposition in both Germany and France has weakened the necessary resolve of both countries. Yes, as it is in our own country, German and French politics just might trump acting in the best interest of each respective countries. So, as an investor/trader, what is one to do if default happens and the global markets begin tanking even more? A reader has asked this question …
I was wondering how one might position himself for a potential European market slide. I started buying Euro put spreads several months ago and morphed them into diagonals and now have deep ITM puts on the Euro and I sell OTM puts monthly. Any other vehicles you could suggest?
Actually, “no” is my answer. Your list sounds comprehensive and well thought out. I hope it doesn’t come to a “market slide,” but if it does, well, you are doing what you need to be doing, protecting yourself.
Now for a little good news, although it won’t help much if Greece defaults in the next couple of weeks.
In yet another positive sign for the economy, borrowing by small businesses in August rose to its highest level since April 2008.
And how about a bit more, as that European thing is quite depressing. This time, the news comes from an inspirational source, and it stimulates imagination …
Starbucks Corp will share profits from two of its U.S. coffee shops with non-profit groups in New York City and Los Angeles to help offset expected government funding cuts to programs for children and education. Partner non-profit groups in those neighborhoods each will receive at least $100,000 in the first year, the company said.
In this time of negativity, it is uplifting to see something as sensible and compassionate as this coming out of corporate America. Just imagine the possibilities if this partnering between non-profits and corporate America catches on. Imagine McDonalds, Taco Bell, Burger King, Subway, and all the other corporate biggies that make their money in the cities of America joining Starbucks in this effort. Just imagine the amount of money generated, the goodwill created and the marketing benefits received for those companies if their customers actually saw some of what they spend going back into programs that improve the cities. Imagine as well the economic benefit to local government as heretofore, local government (taxpayers), have carried the load in this area. Imagine … Well, I fella can dream in these gloomy times, can’t he?
Trade in the day – Invest in your life …
