Greece is another topic causing fear in the markets today. Many people fear the new Greek government will choose to default on its debt… and send Europe into chaos. That would send global markets into a sell-off.
But it’s important for investors to understand the type of sell-off a Greek default could trigger. One type can impoverish you… while the other can make you rich. Teeka Tiwari explains below…
If the Greeks walk away from their commitments, we would have a financially driven sell-off (a noneconomic driven sell-off). That’s different from an economic driven sell-off, which is fueled by an ongoing deterioration of economic growth (measured by GDP).
A noneconomic driven sell-off is short term in nature and doesn’t severely impact economic growth. It creates a buying opportunity.
Knowing the difference between the two types of sell-offs will allow you to successfully profit from the fear of others.
Subscribers to Teeka’s Jump Point Trader service can read “Big T’s” full market and portfolio update right here. Right now, six of the eight JPT positions are up, and four are posting new all-time highs…