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Waiting For The Next Leg In The Euro Crisis

12 August 2010 No Comment

As we’ve been discussing in one of the forum threads (click here to see), the Euro debt crisis is still very much underway.  While the debt crisis is definitely going to “flair up” at some point, it’s best to be positioned for opportunities that might come our way when it does.

What might these opportunities be?  As we’ve been discussing in another forum thread, many multinational companies are trading in an inverse pattern with dollar strength – meaning that when the dollar is up, these stocks are down.  Since the dollar has been weak in recent weeks, the stocks are way up.  An example of such a stock is Philip Morris Int’l (PM) – a stock I mention frequently here on the blog.  You’ll have to click into the forum link above to see the other stocks we’ve mentioned.

The reality is that there will likely be better buying opportunities for some quality stocks like Philip Morris and the others.  The time just isn’t yet so keep your cash ready.  There will be a better time.

While the U.S. obviously has many economic problems of its own, the European problems have taken a backseat in recent months due to the “fix” that was engineered by the European leaders a few months ago (mostly focused on Greece).  While the media spotlight hasn’t been on these countries, it will be again in the near future.  It will be at the height of the next leg of this crisis when you will want to pull the trigger on some of these stocks.

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