Profit From Volatility

The global markets have to deal with a big slice of uncertainty because of the Greek debt crisis. Cnbc collected a few tips for investors on how to handle this turbulence in a smart way.

Richard Kelly, feels that it is important to position yourself partly for the worst case scenario. The head of global strategy at TD Securities spoke on Monday, after European markets dropped by about 4%.

Continued Volatility

The uncertainty around Greece that is still expected to last for a few more days, has pushed strategists to advise to short the euro, run for a ‘safe haven’ like gold, or to look at bonds in countries like Spain or Portugal.

Much will depend on how the referendum will go. In general, whether you are investing for the long or short term, everyone will try to short the euro, Kelly explains. With regards to fixed income, you should also move towards safe havens.

Spain, Italy, and Portugal are viewed as economies that are most vulnerable in this situation. These are also countries that have strengthened their banking systems less than 2 years ago, and then we are not even taking QE into account.

Investment Opportunity Thanks To Volatility

Today is not the time to run off nor to make big money in the market. As the days pass, however, and the uncertainty with regards to the Greek referendum will fade, opportunities will present themselves because of volatility. That is where Spanish and Italian bonds could come in, according to Patrick Armstrong, CIO at Plurimi Investment Managers.

Tim Condon, head of research Asia at ING Financial Markets, is attracted to gold and government bonds when it comes to safe havens. Both gold and US government bonds are rightfully seen as safe havens in times of global unrest on the markets.