Friday before going into work I watched CNBC for a few hours. It seems like the European debt trouble is starting to come to the forefront of the markets. It even drove the market down when we got good consumer confidence numbers. The Euro got CRUSHED today against the dollar. Some of the analysts I heard on CNBC were saying that Italy, France, Spain, Portugal, and even Germany should be down graded even more then they were on Friday. Once again Greece is playing chicken with the world financial markets in hopes of getting as much of their sovereign debt forgiven as possible. The European Union will really have to get along to come up with a solution to these problems. Historically Europe has not been the greatest at solving their common problems.
I feel like these downgrades and the situation in Greece should cause a significant market pull back and then a buying opportunity once the worst of it is priced into the market. I still feel that the markets will end higher in 2012 then they did in 2011. I will be watching closely and waiting for the next opportunity to buy later in 2012.
Can we have a post describing a "Pull Back"? How to spot the difference between a pull back and a significant crash. If I am eyeing a stock and waiting for a pull back, I want to be able to know when I can buy. But I don't want to buy during what I believe to be a pull back and have the stock continue to drop for a week while I lose money.
ReplyDeleteGood question, I'll answer that in my next post.
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