It appears the European debt crisis is continuing to get worse, making being long in the U.S. stock market seem increasingly tenuous. If one were instead to choose/embrace the notion, "it's going to get worse in Europe", how would one best trade that? What are some of the ways?
Two I can think of is:
buy longer term puts on the major stock indices, e.g. on S&P 500
use mechanism X to buy the dollar against the Euro (which mechanism is good)?