By Justin Spittler, editor, Casey Daily Dispatch
“How many people have thought about buying Greek stocks?”
I heard Peter Boockvar ask this question two weeks ago. He was speaking at the New Orleans Investment Conference.
Boockvar is the chief investment officer at Bleakley Advisory Group, a $3.5 billion wealth management firm. He’s also the editor of The Boock Report, a macro investment letter.
When he asked the question, maybe one out of a hundred or so people in the ballroom raised a hand.
And why would anyone? Greek stocks have been obliterated.
The Athens Stock Exchange is down 20% since the start of the year… and down 85% since 2008, when the country was absolutely rocked by the last global financial crisis.
Greece’s economy is also a mess. It’s shrunk 26% since 2008. And unemployment is running at 20%. That’s five times the U.S. unemployment rate.
This is why most investors want nothing to do with Greek stocks. And that’s exactly why you should give them a look…
• As regular readers know, we’re contrarians at Casey Research…
We believe it pays to buy stocks other investors have left for dead.
This is how legendary investors like Warren Buffett, Stan Druckenmiller, and Jim Rogers made billions. It’s also how Doug Casey built his fortune.
Of course, Doug would be the first to tell you that you shouldn’t buy something just because it’s been beaten down. You should also have a reason why that asset will appreciate in value.
And we have that with Greek stocks.
I’ll tell you about the safest way to speculate on Greek stocks in a second. But first, let me tell you why Boockvar thinks Greek stocks could soon rip higher.
• Kyriakos Mitsotakis could be Greece’s next prime minister…
Mitsotakis is a Harvard-educated politician and the leader of the New Democracy party.
But unlike most Greek politicians, Mitsotakis has different plans for Greece. He doesn’t want to turn the country into a welfare state. Instead, he wants to spur investment.
And he plans to do this in a few ways. Number one, he wants to green light several major projects, including a gold mine in northern Greece and the development of the former international airport at Elliniko.
These projects haven’t gotten off the ground because the amount of legal and bureaucratic red tape in Greece is suffocating.
That’s something Mitsotakis wants to change.
Together, these projects are worth about €11 billion ($12.7 billion). That might not sound like much money. But that kind of investment would have a huge impact on Greece’s $200 billion economy.
Mitsotakis also wants to cut corporate taxes from 29% to 20%. And he wants to reduce property taxes by 30% to offset measures imposed by the Greek government during the last financial crisis.
Mitsotakis believes these measures will restore confidence in Greece’s economy and attract outside capital:
This is our biggest bet – to convince everyone, the markets, the creditors, investors and of course the Greek people; to build confidence in the country and the new government.
And that’s exactly the sort of thing Greece needs.
Unfortunately, there’s no way to know if Mitsotakis will come out on top when Greece holds elections next October.
But his New Democracy party is currently leading in the polls.
• If this continues, we could soon see investors “price in” a Mitsotakis win in Greek stocks…
And that’s something you’d obviously want to get in front of. And sooner rather than later…
As I mentioned, the Greek elections are not scheduled until October 2019. But government officials have said they could start as early as May.
So consider betting on Greek stocks if you’re looking for an under-the-radar speculation with huge upside potential and little downside.
You can easily do this by buying the Global X MSCI Greece ETF (GREK). This fund invests in 15 of the largest and most liquid companies in Greece.
Just be sure to treat any investment in Greek stocks as a speculation. As always, don’t bet more money than you can afford to lose.
New Orleans, LA
November 14, 2018
Today, readers respond to yesterday’s Dispatch: “Sessions Is Gone… Outright Marijuana Legalization to Come?”
Promotion of legalized marijuana as an investment in the entertainment business is just flat-out wrong. Like anything else that appeals to people’s interests in pleasure, they will reach a point of wanting something a little more powerful, then a little more, then a little more. They will not be satisfied.
There will come a day when auto injuries and deaths will skyrocket because of this investment opportunity. I, for one, maybe the only one, will not have blood on my hands from investing in and promoting this appeal to people’s weaknesses.
It would seem to me that if I wanted to set myself up as drug dealer, the last thing I would want is for it to become legal.
You failed to mention that all pot gains were given back plus more losses in days subsequent to Sessions’ firing.
As always, please send in your thoughts, along with any questions or suggestions for the Dispatch, to [email protected].
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