Investors This Recent Market Frenzy Might Be Your Buying Opportunity

With the recent crash and failures in the stock market many people are wondering what’s the next step.  Why are the markets freaking out?  Whose to know, could it be the German short-selling ban, the Greek debt crisis, falling value of the Euro, China’s tightening its monetary policy, U.S. budget deficit, falling crude oil prices, or the Goldman Sachs scandal, I don’t care pick one to blame.  All I do know is if you are a long-term investor I see this as a great buying opportunity.  The Dow Jones has fallen 1,000 points (9.5%) in recent weeks and many stocks have dipped down to levels where they valuations have become very attractive.  Evan Newmark analyses this situation best saying “A hint of uncertainty begets volatility which begets hysteria which begets panic which begets Armageddon.”  If you are a trader I would suggest being cautious and buy only while protecting yourself.  However if your looking at the long run buy strong value equities and let them sit and a year from now you’ll be happy with the decision.  What makes me optimistic is the cash is following around in big Fortune 500 companies.  Free cash flow of the market capitalization of the S&P 500 is near a two-year high.  This bodes well for companies looking to expand and move forward.  In fact, combined Microsoft, Google, Cisco, Apple, and Intel have enough cash on their balance sheets to finance the Greek bailout

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Investors This Recent Market Frenzy Might Be Your Buying Opportunity