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European shares close sharply lower as a Monday panic again grips the periphery. Stoxx 50 -2.6%,...

European shares close sharply lower as a Monday panic again grips the periphery. Stoxx 50 -2.6%, Germany -2%, France -2.2%, Italy -4.1%, Spain -3.7%, U.K. -1.2%. If the last two Mondays are any predictor, European shares have bottomed for the week. Peter Lynch used to like to buy at the close on Mondays.
Comments (8)
  • Tack
    , contributor
    Comments (12761) | Send Message
     
    "I love the smell of panic in the morning," to paraphrase a famous line.
    25 Jun 2012, 11:46 AM Reply Like
  • 2MuchDebt
    , contributor
    Comments (215) | Send Message
     
    There is reason to panic, but the market's not fully there yet because for some reason the market thinks QE will solve all problems. You've been preaching this "buy the panic driven dips" for a while now. Long term it makes sense, but I think we have farther to fall.
    25 Jun 2012, 12:35 PM Reply Like
  • Tack
    , contributor
    Comments (12761) | Send Message
     
    2M:

     

    Panic is never useful. A disciplined approach is.

     

    Actually, I preach having a balanced portfolio with significant yield. I don't buy "dips," as in market dips; I buy individual issues when I judge them selling at bargain prices versus their intrinsic values. General "dip buyers" are more likely to be traders and market-direction guessers.

     

    So, yes, dips send me out window shopping, but not necessarily buying anything unless the specific issue meets my criteria and looks appealing.
    25 Jun 2012, 12:43 PM Reply Like
  • 2MuchDebt
    , contributor
    Comments (215) | Send Message
     
    Panic is, however, part of the markets and will always be.

     

    That's a good strategy; one that I follow as well. I focus more on regional and industry specific securities in comparison to individual securities.

     

    Did you ever end up buying some JPM?
    25 Jun 2012, 12:52 PM Reply Like
  • Tack
    , contributor
    Comments (12761) | Send Message
     
    2M:

     

    No, JPM is a bit too big and too mainstream for my value-oriented strategy. I was momentarily intrigued to buy it, as a trade, when it got all panicky after their trading debacle, but decided to remain disciplined and eschew the short-term trade. One of the reason I don't like to attempt to trade low-yielding issues for quick gains is that if I guess wrong, then I'm saddled with an underwater issue, not paying yields at my hurdle rate, which is quite high.
    25 Jun 2012, 12:59 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1558) | Send Message
     
    the real panic hasn't even hit yet....
    25 Jun 2012, 12:01 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9923) | Send Message
     
    Yep, probably lots more downside yet to emerge.
    25 Jun 2012, 04:44 PM Reply Like
  • TangoOscar
    , contributor
    Comments (377) | Send Message
     
    Once these geniuses at the summit realize the Euro is hosed or start threatening countries with the boot from the EU, things are going down the crapper real fast.
    26 Jun 2012, 12:07 AM Reply Like
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