Don’t let the Euro debt crisis scare you away from the stock market!
Let’s not make a mistake!
A lot of concerns of the financial markets are very legitimate and it seems that this „prolonged European Halloween” which we can watch these days will not end anytime soon.
But don’t let you scare away from the stock market!
Globalization is for real: Among the companies listed on major stock exchanges there is no more such a thing like a pure US or a pure European company.
That means that companies today are much more diversified and independent of single markets or regions like the Eurozone region than they were years ago.
But institutional investors still buy or sell whole regions or even continents….buy Europe…sell Europe….start again…
The individual investor who does not behave like lemmings has a clear edge here:
Try to profit from low prices in depressed markets and try to identify good companies, if possible the no. 1 or no. 2 in there markets with strong balance sheets and capable management.
But avoid European financial companies like banks and insurances at any cost! They are „toxic waste”.
Who knows exactly how much European public debt and which one they will have to write down?
Rather take Colfax stock (NYSE: CFX) as an example, a clear winner and successful integrater in its field of industrial pumps and fluid handling. This blog follows Colfax now for 2 ½ years and it absolutely crushed the S&P 500!
At this time of writing the stock seems a little expensive after it released its excellent Q3 2011 results but why not wait for dips when „financial Halloween” seems to come back to the markets?