The European Central Bank meeting today (Thursday) has made some already enticing investment opportunities all the more attractive....
Today the European Central Bank stuck to the Eurozone's easy money script. ECB President Mario Draghi announced today he'd keep central bank benchmark rates in the cellar at 0.05%.
This indicated the central bank president has no intention to turn off the easy money spigot. In fact, the large-scale asset-purchasing program - quantitative easing - slated to begin March 9, proves Draghi's ready to turn that spigot to full blast.
Eurozone QE, announced in January, will flood the Eurozone economy with 60 billion euros ($66.1 billion) a month in government debt and asset purchases. It will expand the ECB balance sheet by 1.1 trillion euros ($1.2 trillion) by the program's expected end in September 2016.
These inflationary policies are going to keep downward pressure on the euro. The Eurozone kicked the Greek debt crisis issue four months down the road last week when it extended its current bailout program. This looming threat of a Greek exit from the euro is going to smother the currency even more.
But it's also providing strong "Buy" signals for these three investments...
European Central Bank Profit Opportunity No. 1: Short the Euro
The euro still has room to fall.
It's touched off at fresh 11-year lows following a 21% plunge since its peaks last March. It's now trading at $1.1023 - still a long way down to dollar parity where it's headed. If not further.
In January, Goldman Sachs forecasted that the euro would hit $0.90 in January 2018. Goldman is right on the main point. The euro still has a lot of room to fall. But they're off on the timeframe.
"I think Goldman analysts are too conservative," Money Morning Chief Investment Strategist Keith Fitz-Gerald said. The scope of Eurozone QE, Fitz-Gerald said, "Suggests to me that the euro will fall farther even faster than Goldman realizes. I think early 2016."
The best way to play this is through the ProShares UltraShort Euro ETF (NYSE Arca: EUO). This exchange-traded fund aims to generate twice the inverse daily returns of the dollar price of the euro.
"Critics charge that the trade is getting crowded, but I don't think so," Fitz-Gerald said. "In fact, I believe the trade still has a way to go, especially if there's a Grexit."
Money Morning Members can see the next two profit opportunities from the European Central Bank's money printing - for free.
European Central Bank Profit Opportunity No. 2: Follow the Growth
There are sectors to avoid in Europe right now, but Eurozone QE will boost certain sectors.
Big banks aren't a good bet now. They're already saddled with messy balance sheets and being unjustly rewarded with more easy money. And retailers? They'll be hit with a weaker euro.
High-value industries like healthcare, tech, energy, and defense will grow. These sectors are likely to light the way to any future Eurozone recovery.
But at the moment, Fitz-Gerald said there's "a chronic shortage of highly-trained, highly-skilled people needed to" staff the very jobs in these industries that are going to pull the Eurozone out of its economic struggles.
That's where Dice Holdings Inc. (NYSE: DHX) comes in. Dice Holdings helps connect highly-skilled workers in North America and Europe with employers in these sectors.
Right now DHX is trading just south of $9. It only has a $478.6 million market cap. That is keeping it off the radars of many investors... for now. But institutional investors own 80% of Dice Holdings stock. Make no mistake about it: the smart money is betting on it.
"That's a huge vote of confidence from seasoned analysts who have the power to move markets," Fitz-Gerald said.
European Central Bank Profit Opportunity No. 3: Don't Ignore All Greek Stocks
It may be hard to believe that a company based at the heart of the Eurozone debt crisis is a buy right now. But looking at the big picture has highlighted one opportunity that's trading at a bargain price...
Navios Maritime Holdings Inc. (NYSE: NM) is headquartered in Athens. Navios is a shipping and logistics company. It has a fleet consisting of 66 vessels used to transport dry bulk commodities, like iron ore, coal, fertilizers, and grains. Vessels are chartered to trading houses, producers, and government entities.
As Fitz-Gerald said, "Global shipping is not going to go away."
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Navios is a small-cap with a strong balance sheet. Its stock has been beaten up in the last year. It's down 60% since it peaked at $11.43 almost a year ago to the day.
But at around $4.56, it's regaining momentum. This year it bottomed out at $3.63 in late January, and is up 26%.
Navios stock is an exciting opportunity right now because its stock price is highly correlated with the Baltic Dry Index. The BDI essentially measures producer demand for the kinds of raw materials that dry bulk shippers like Navios transport.
Last month the BDI hit an historic low - its lowest level in nearly three decades. At a reading of 509, it was off its 52-week high by close to 70%. But, this crash in the BDI only brightens the prospects for Navios.
Navios is cheap. And the BDI is still trading in a range not seen since the 1980s. The only way to go for the BDI - and Navios - is up.
"Contrarians realize these are typically the best setups to invest in," Money Morning Resource Specialist Peter Krauth said. "You can collect a generous yield while waiting for the crowd to settle down and come to the same conclusion you've already reached, only at higher share prices."
Krauth recommends a trailing stop - get the details here.
Markets Are Getting Increasingly Wary... Anti-austerity leaders in Greece threaten to leave the Eurozone over their demands to renegotiate 30% of the commitments Greece has made to EU states in its debt repayment plan. While a Greek exit from the Eurozone would shake markets, the real threat from Greek default is the $1.5 quadrillion in derivatives tied to Greece's debt through U.S. Treasury notes and other governments around the world. Here's how you can limit risks tied to the Greek contagion...