The stock markets have been on a free fall for some time now ever since the Greek debt crisis blew up. The Euro has been going down vis-a-vis the US dollar. The dollar has been gaining in strength even against gold. Does that mean all is hunky dory and that all the problems are over with the US dollar and the American economy? No. Whenever there is a crisis in the world economy, the money takes a flight to the US dollar. And that’s what we are seeing now. It doesnt mean that all the weaknesses inherent to the dollar have vanished
The situation now is mirroring the famous words said by some great soul “In the land of the blind, the one-eyed is the king“.
So, what does this crisis mean to people who want to invest for the long term? Its the ripe time to buy. Dont pump in all your money at once. Buy good companies in small quantities. The market might go down further from here. Buy some now and some more when the markets go down further. Never try to time to market. The markets might not go down further from here, and if you buy now, you would have still got some great stocks for cheap.
Am a big follower of Warren Buffett when he says “Buy when there is blood on the streets“. It might not be complete mayhem now, but there are some great companies available for cheap.
I have bought a few more shares of the following companies
I really hope that the markets fall further so that i can pick up some more good stocks at some great prices.
Important Note: Please dont follow my buy/sell advise blindly. Do your own research or follow the advise of a certified financial planner before investing. Iam not responsible for any profits or losses you make by following my investment strategy.
Above price charts courtesy: Yahoo Finance