Adjusting My Portfolio for a Forced Renegotiation of Greek Debt

I’ve been following Greece’s economic woes pretty closely since the bottom fell out this year (or something along these lines) and in my opinion, the debt-plagued nation is about to go through a restructuring.  There is loads of precedent for it in emerging markets.  I went to part of high school in Argentina, my graduate school focus was developing country finance and my first Wall Street job at Chemical Bank (now JPMorgan Chase) was trading emerging market defaulted government debt.  Over the course of my adult life I’ve seen the following countries stick it to their lenders.

Argentina (2 negotiated, 1 unilateral),
- Brazil (negotiated),
- Poland (negotiated),
- Venezuela (unilateral sort of),
- Mexico (unilateral internal debt, negotiated external),
- Russia (unilateral then cured). 

Seeing a renegotiation of timing or payments by Greece and some sort of guarantee by the EU is not without lots of precedent.   It seems all but inevitable. And that said, bond prices have had plenty of time to price in a partial default.

READ ON TO SEE HOW I AM ADJUSTING MY PORTFOLIO

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Adding TEVA Pharmaceuticals to My Portfolios at Kapitall

I used the market pullback over the last couple days to add the pharmaceutical company TEVA (TEVA $49.22) to my portfolios. They have a good generic drug business which ads stability. With a POP (forward price earnings ratio) of 9 and a dividend yield of 1.6%, the company is also attractively valued.

I think the entire pharmaceutical sector offers a compelling value opportunity.

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CFA Society of Seattle Panel on Green Investing

CFA Society of Seattle

On May 25th I'll be participating in a panel hosted by the CFA Society of Seattle titled Why All the Fuss About Green Investing. The panel also includes,

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How I voted my United Technologies Proxy

I own UTX and feel the shares are fully valued.   I have part of my position hedge with call options.  The company is well managed and I see no reason to urgently sell.

PROPOSALS...

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March Commentary on Kapitall

Below are some links to my March articles:

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Ask Neubert: How I Voted My Abbott Labs Proxy

First, let me say that I own Abbot Labs (ABT) because I think the company has good value.  Abbott has a good franchise of drugs and its research will continue to make more useful drugs.  At a forward P/E of 10 and growth that represents good value, it has been hit too hard by investors' lack of interest in the pharma sector.  So I think now is a good time to own the company, as I think the stock is about to go higher...

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February Commentary on Kapitall

Below are some links to my February articles:

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Ask Neubert: BIG PHARMA - VALUE OR TRAP?

The value trap is one of the biggest dangers that value minded investors, aka bargain shoppers, have to contend with. It's even worse for contrarians like me who always look for gems in the mud that are hated by the masses.

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Appearance on KCPQ Fox TV News This Morning

Today, I met with Mark Wright as a guest on Q13Fox News This Morning .  I came on right after a fun weather segment.  Groundhog day is big with the meteorologists.  While I didn't get to pet the little groundhog in the studio, Mark and I did talk about the economy and what new investors should be doing.  He also managed to get me to talk about bicycle stock settlements before India modernized.

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January Commentary on Kapitall

It's time to think about putting yourself back on that investing path.  If you're new to investing start doing some practice trading and learning at Kapitall.  Then, pay off your credit card debt if you have any. After that put some money in your savings. When you're ready, and have a little confidence pick an online broker and open an account.  Be conservative and slow with your investment choices at first. Below are the links to my January articles:

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