I just heard this from another money manager -
"There is one (and maybe only one) thing I am certain about.
If there is good news in Europe, many market participants (individual and institutional) are caught offsides and underweighted in U.S. stocks."
If we do in fact get some positive developments coming out Europe, I would expect there to be a mad scramble of investors looking to buy U.S. stocks. Despite today being a relatively flat day (I feel like I'm watching paint dry on the wall), I'm getting the feeling that stocks could reverse to the upside over the next week; at least that's why my fingers are crossed.
In other news, yep Facebook's stock is down AGAIN 3% to $26.05/share...one word. Nightmare. The financial stocks are all up nicely today which is usually a pretty good sign of the overall health of the market because as the old adage says, "as the financials go, so goes the rest of the market" (I realize most people haven't heard that but I've read it and heard it quite a bit over the past 12 years and it's pretty much true).
I had someone ask me where I thought the best place to invest money in right now would be, and generally speaking I told him that I thought buying U.S. stocks/mutual funds were the best investment vehicles right now because whenever the European mess dies down a bit, the U.S. stock market is going to behave like a coiled spring. As I've written, our economy looks pretty good all things being considered, and even the housing numbers that were released this morning confirmed my belief (and those of many others) that the housing market is improving. As an incredibly successful money manager I know recently wrote, "Buy America, That's What I'm Doing".
I hope he's right!
