Week Ahead
The last couple of weeks have been pretty brutal for the stock market. The volatility has skyrocketed and a lot of it has to do with irrational fears about Greece.
I have said it once and I will keep saying it. Worries about Greece and Europe are completely overblown. Seriously, how much do you think the problems in Greece and Europe will really affect your every day life? Will you lose your job because of Greece’s debt problems? Will everything you buy in the grocery suddenly cost a lot more because of the slower growth in Europe? Will gas prices suddenly jump because of Europe? (actually, gas prices are going to go down!) I highly doubt it.
In terms of how Europe and Greece’s debt problems affect the people in the US, it’s really insignificant. It only affects an investors psychology because they see people panic-selling and that in turn, causes more panic selling. It’s fear — fear spreads faster than wildfire… and fear is irrational.
So my take on this week is: stay rational and focused. Find some solid companies that are trading at steep discounts because of the recent market crash. There are some really great names out there selling at really cheap prices — companies like JPM, WFC, BAC, C and other large bank stocks have been knocked down significantly during the past 2 weeks.
Stay focused and keep your wits about you this week!
