Portugal Prime Minister Jose Socrates stood by his promise and resigned late Wednesday, leaving the country with a higher possibility of a bailout. Socrates had hoped to push through structural reforms in the country in order to cut down borrowing costs and decrease its fiscal deficit.
The prime manager's resignation was just another undesirable event for Portugal, as Moody's downgraded the country's sovereign debt rating last week and gave Portugal a negative outlook. Although nothing is certain, the outlook suggests that further ratings cuts may ensue.
Portugal will be facing an uphill battle, as the losses in investor confidence and increased cost of financing its debt further aggravates the country's ability to avoid a bailout situation.
Depending on how investors predict the situation in Portugal and Europe to continue, there are several options to consider.
Portuguese stock Portugal Telecom SGPS, S.A. (PT) trades on the NYSE and could rise if Portugal's finances improve.
The ProShares UltraShort MSCI Europe ETF (EPV) is an ETF that may experience an upswing if problems in Spain, Portugal, and other eurozone countries get worse.
The iShares S&P Europe 350 Index (IEV) is an ETF that could experience gains if eurozone leaders can successfully place measures to improve the fiscal conditions of member countries and their financial systems.
Jason is a co-founder of benzinga.com. You can follow benzinga on twitter.com/benzinga.