Chelski & Associates

When a national debt reaches a high percent of that nation’s gross domestic product, investors must have belief that the nation will be able to pay or the currency is in danger. Greece’s debt is now considered junk. Portugal and Spain’s ratings have dropped and may go into free fall to junk as well. Risk concerns are threatening Italy, Ireland and even the UK.

My inverse Euro short position (EUO) enjoyed a 12% return on investment in one month. As of today, my entire portfolio is sitting on the sidelines in US dollars, which is relatively gaining as most everything drops. The dollar is still a safe haven in this risk aversion storm. But be forewarned: fear of national debts could cross the Atlantic.