Who Benefits Most From The Euro Debt Crisis?

Who Benefits Most From The Euro Debt Crisis?

It's a disaster for the European Community, but it's a boon for plenty of markets. Check out the three biggest benefits!

For every catastrophe, someone benefits.  It's something of an immutable law that when something horrible happens, someone will be around to clean it up and thus profit from it.  And as big a catastrophe as the European debt problem is, there's just as much opportunity for gain.  Here are the three biggest beneficiaries of this new disaster:

1. Pretty much any non-European bond market.  If even Argentina (who was the Greece of South America just under a decade ago)could discuss a new bond issue on the strength of precious little more than "at least we're not Greece", it's clear that the bond markets of anyone not connected with Greece in some way have gotten a serious boost to their own issues.  In fact, that's been just the case over the last few weeks.  United States bonds, Asian bonds, Australian bonds--everybody's sovereign debt has seen a little extra boost lately on Argentina's grand strategy.

2. Commodities.  Seen gold prices lately?  Silver?  Steel, copper, all the rest?  People are putting a lot more of their money not in paper goods, but in STUFF.  Pure, honest stuff that they can even take possession of if they're so inclined.  There's even talk that gold is, de facto, "the world's new reserve currency".

3. Stocks.  Leave aside that massive one-day drop in stock prices in the Dow, and you'll be amazed by how much the various stock markets have gained in the last few months.  It's crazy, I know, but corporate issues are actually doing better than expected over the last few months. 

There's one important thing to keep in mind, though--these are the big gainers as a result of the bond catastrophe in Europe TODAY.  Tomorrow, any or all of these could change.

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Comments

  • Charlie Goodman

    May 19, 2010

    Gold producers will gain the most. Investors in junior gold explorers just starting up gold production will win even more. Check out this one: www.solteramining.com and think about Greece. Then Spain, Portugal, Italy, UK, ...USA.

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