As we continue to watch the dialogue taking place within the European Union concerning the crisis in Greece, we have seen very volatile action in the markets. The Dow Jones Industrial Average continues to test its intra-day low of May 6th. We saw this index briefly fall below 10,000 during the "flash crash" as it is now being called. Gold is rallying. The Euro is falling. Make no mistake, there is still uncertainty in the markets. But the reasons behind the panic in the markets are over old news. Europe is experiencing a crisis of confidence in their financial system. So far, the U.S. has not directly been involved in this mess. The positive effect of this is that it will continue to keep inflationary pressures in the U.S. under control. The U.S. economy continues to strengthen and looks even better when compared to Europe and the rest of the world. Could this change? Of course.
PERIODS OF UNCERTAINTY IN THE MARKETS ARE GOOD OPPORTUNITIES FOR BUYING!!
Whenever the masses are talking about the market going much lower, it usually will do the opposite. Yes, we did touch many technical support levels during those few minutes of trading on May 6th. And we continue to see volatile trading. But opportunities remain for buying in this market. Now is the time to accumulate those companies which you liked over the past year but didn't want to chase.
The time period May through November is usually a rough time in the market. The addage, "Sell in May, go away" is being played out. When Armageddon finally does arrive, it will find us when we least expect it-- not when everyone is looking for it.
Note: The above is for information purposes only. Any decision to buy, sell, or hold a specific investment for a portfolio should be reviewed with your own personal investment advisor.
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