With the crisis in Europe and the tensions throughout the world (China, North Korea, and oil spills) there are some companies that I see becoming attractive again. I do not think the market as a whole is a buy nor do I believe that the factors that brought the market down to these levels are going away overnight, but buying into stocks that have a good dividend at current or even lower prices could prove to be a good place to put some of the profits you took off the table before this correction started. Yields worldwide are low and look to stay that was for some time in most markets. Keep you eyes out for stocks that have attractive yields and look for a good price to get in for the long run.
The flight to safety today has concerned the Japanese Govt. enough to make statements shortly after the market opened in Asia. I feel that they are very uncomfortable about the strengthening of their currency, and in effect, the biggest way that the woes of Greece can spread to them in the short term. If looking for a currency trade to put on anything against the Yen would be a good place to start looking. Should the market continue this direction It will prompt action by the Bank of Japan to intervene, should the market recover, and it will be a strengthening of riskier currencies. As far as stocks are concerned Japanese companies have more purchasing power at the moment but exporters will certainly suffer if the currency remains at these levels.
That is the question on a lot of people’s mind right now. Is this a sign of the beginning of the end, or a market correction to get rid of some of the fears in the marketplace? I think that if you took your profits early and/or have cash available you should start looking for new places to put it to work. Whether it is stocks you lightened up on or sectors that you feel are being taken hostage by these recent selloff. I am taking a wait and see approach for the vine strategy, more on that in the vine scenario page.