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Trade Aviator President Andre Julian on the risk of Greek default and whether the country will remain in the eurozone.
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Warning for you it is increasingly likely that Greece will leave the EU and American investors should prepare.
For a massive pullback so says -- Julian who also says don't fret the trade aviator president says he has -- game plan.
To help you grease proof your portfolio.
You can play it safe and cash him at the same time I want to hear that's doing joins us now from Irvine California proud graduate of UC Irvine he has.
A Fox Business exclusive -- Rick -- to see you.
You made an even even more dramatic statement that this is at least the Euro zone problems as we see them.
Sort of barreling towards some cliff could be a Lehman -- that -- Lehman Brothers type events.
How and why.
I think so it isn't because it's a liquidity crisis you have to remember you know we can have markets frozen in Europe and and that's that's a huge issue or if you look what's happening Greece.
They're basically gonna default they didn't just run out of money they have a government there of their they have a parliamentary system that's arguing so they they can't come up with -- decisions.
And so if they default you're gonna have credit default swaps all of -- some that are due.
That's gonna put a strain on the financial market you have 96%.
Of the European banks actually own Greek debt.
Germany -- -- at 1520%.
France owns and musicals on and on you have this domino effect but the big the big part of it is not only the debt.
But it's the liquidity of the liquidity cruises were back to you know what what happened with Lehman Brothers as well panic in the market.
That's a distinct possibility but breaking news -- -- Merkel just making statements now she wants.
Breaking news she wants Greece to stay in the eurozone and -- swallowed on the new socialist president of France is saying that.
We should and will support any growth initiatives so once again you know you have on the -- Merkel of arguably the strongest.
Government there in the eurozone saying Greece is staying and -- -- Christine Lagarde of the -- -- -- said that any exit of Greece would be extremely messy.
What -- they put everything behind it and say they stay in there now won't you look like a chicken little who screaming the sky is falling.
I mean -- district we can't further down the road you know the whole point is that I don't think -- these problems necessarily.
Us solve themselves very quickly and some -- a long time to develop we've been talking about the problems in -- -- you know for years now -- mean for it's it's just been the topic conversation.
So maybe maybe they're right -- Greece does stay in but the problem is it leads to more.
Debt it leads to higher yields and bonds and at some point it really comes becomes unsustainable think about.
If if Greece is offering bonds at 7% 8% 9% of at what point are they not going to be able to sustain paying off that that the reason the US is and is is as big of a trouble is because our debt basically as you know.
We're we're we're borrowing money for free so that's a totally different situation in Europe or anything as a band -- it's it's pretty -- -- -- We're -- can argue about that I I tough tend to agree with you but now you bring in the Greek proof your portfolio if Greece were to go out of the eurozone and we see some type of the sort of earthquake -- into the financial world let's talk about.
Pull it out three names three names that you say are really ripe for the portfolio right now.
Why no one -- like Alex selling company and its and -- it has nothing to do with Greece has nothing to do with Europe it's a it's utility stock commits a tear in the south they have really good over low overhead.
They have in house engineering which -- chill over all the overhead down as well they've subscriber base that's growing the offer four point 3% dividend and that's huge.
And if you muted dividend a wall of all this market volatility you're waiting for some of these -- to pan out I think that that definitely aids in your for.
-- OK and we should mentioned you know that very big into nuclear they've they've got the approval to build new nuclear plants of their at least making things happen what's -- the health -- What pick -- -- out for health care.
You know I I like -- Teva you know Teva Teva is -- is a great company that one of the largest former producer than in the entire world.
Other based in Israel than its its you know if people don't understand how companies work in Israel they have a tremendous work ethic and it's really about -- what can you do for the company.
Why it -- -- -- they fall if you look at the right part of the screen here they have fallen precipitously what's going on is that where is Summers are just part of the market -- alright.
Well I think and one it's a little part of the market tumble more I think that's what opens up the opportunity to have a couple drugs are co axle and and another one up duplex or -- if -- -- -- the name sorry but.
That are actually.
Coming off of patent protection so they're going to be attacked by some of the generics which is kind of ironic because terrorize and has one of the biggest generic -- -- on the planet or.
But -- out some of the generic companies are gonna attack those drugs so I think that they're in their suffering a little bit of follow -- from there -- plot from this point forward I think they're looking really strong you look at health care you look at lowering costs and people moving into generics.
And right now that there's a staff that one out of five people to take appeal in the United States have a -- label on the product.
So they're do they're growing tremendously so I think it's a perfect -- created jump in now they pulled back and -- again a little bit of a dividend here one point 9% let's get your consumer names McDonald's and Kraft as it happens.
Elect that's not I've always liked those I think those are good Staples and having your portfolio obviously McDonald's is tremendous they've they've been around forever but they're really they're they're really -- company they're making good -- over inroads into -- brick nations.
They're not the number -- one and market share in China but they're they're trying to get there publicly pretty much all the number one market churn in any of the market that -- And their overhead is change what's greater the cost structures changed they have met cafe they have that there healthy menu and that that really is low overhead.
And the dynamic of of who was going to McDonald's is changes -- lot of urbanization and these -- economies and so I think there's a potential for profit.
Crafts you know craft it is the same situation -- -- there is a great brand they have all of eleven of the world's top brands.
You know billions of dollars -- from those brands every single year.
And a lot of it also -- do the distribution channels Kraft mcdonalds site even recovery ideology of a great distribution channels -- -- these emerging nations I think that's -- we're really gonna help them push forward over the coming years.
And the neon orange Kraft macaroni and cheese is just a winner with all children all around the world are great thank you can't -- actually.
Thanks to his great -- -- -- -- -- hundred Chilean trade it aviator president new company -- for Andre.
