Can default rescue the euro and stock prices?

Its been sometime since I've come to post, so here it is:

If you haven't picked up a newspaper in about 2 years than you wouldn't know that Europe has dominated the headlines. Countries like Greece, Portugal and Ireland all taking ECB bailouts and speculation of a Greek default growing.

What does this mean for you?

If you are not directly invested in Europe you have probably still felt the contagion, and if you are than you have most likely seen losses on your investments. An organized default may save the euro and boost your stock prices as well.

Lets look at Russia's default in 1998 and Argentina in 2002, both countries after default saw essential company stock prices rise +1,000% as stocks have been brutally hammered and value investors saw the value of the companies in the economy.

Default priced in?

The Athens exchange has lost one third of its value in the last several weeks and other exchanges have seen losses all across the board.

A stock like The National Bank of Greece (NBG) which is trading at pennies on the dollar when looking at current assets and lucrative businesses abroad have priced in a default. If default occurs this is a stock to look at as being a value investment.                                Current market price: $0.78

How can you make money?

Essential companies in these damaged European economies is a great way to pick up some bargain stocks. Companies that the economy simply will no function properly without, banks, telecommunication, utility companies etc. Values of these companies have been wiped away by speculation and fear and reality is these companies are needed to progress further. Imagine waking up without utility companies, banks, cellphones?

"Be fearful when others are greedy and be greedy when others are fearful" - Warren Buffet

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These are brief explanations if you have any questions or would like additional information please contact me directly through the blog. Leave your email and I will try to respond quickly. These are just opinions of mine and you should not use a specific opinion to make an investment. Investors should be aware of the risk involved in making investments.