“From what I hear… Greece can barely hold on until February…”

Yahoo! Finance reports the new Greek government just shot down a fresh European “debt injection.” The ruling party did not like the strings attached to the money. Without the funds, the potential for a Greek debt default is high. This is causing market volatility… but it also provides us a tremendous investment opportunity. Teeka Tiwari explains, below:

From Teeka Tiwari, editor, Mega Trends Investing: After being bailed out by the European Central Bank (ECB), International Monetary Fund (IMF), and European Union (EU), Greece promised to make several cuts to national spending. These spending cuts are called “austerity” measures.

However, the Greek people weren’t so hot on the idea of seeing their entitlements slashed. So, the existing party got voted out and a brand-new anti-austerity party (called Syriza) just got voted in.

The election outcome has financial markets worried that Greece may renege on its loan commitments. The concern is that Greek debt impacts nearly half-a-trillion euros’ worth of other debt.

If the Greeks default, it’ll have an escalating effect throughout the global financial system… and the 20% broad-market crash I’ve been hoping for would finally be here.

The good news for us is even if the worst-case scenario happened in Greece, U.S. stocks would rally back quickly. This is because we have sound economic growth in place (you can refer to yesterday’s Palm Beach Daily to review these positive economic numbers).

So, we’ve determined a default by Greece is the worst-case scenario; now let’s look at the other side of this situation. The previous Greek government was a coalition of different parties. That made agreeing on anything very difficult.

Now, for the first time since the Greek crisis started, the Greek people have a strong unified government. That means they can actually get things done.

When the Syriza party takes a sober look at its position, it will realize that no life exists for them outside the European Union.

If the party exits the EU, no one will lend Greece a dime. Greece has no natural resources to exploit outside tourism. As such, the country has no choice but to remain in the EU.

I don’t think Greece will walk away from its debts. What I think will happen is a loosening of the current austerity measures and a lengthening of the repayment terms.

Bottom line: No matter which way things play out, there will be a lot of drama. It will keep volatility high. Look beyond the commotion and view the Greek crisis for what it is… an opportunity to profit from the continued upward bias of the U.S. stock market.