By www.ProfitableInvestingTips.com
Profit from a Global Stock Selloff
Stock markets across the world plunge on the news of an increasingly severe debt dilemma in the Euro Zone. In the meantime smart investors can look for ways to profit from a global stock selloff. United States and European stocks fell on news of increased borrowing costs in Spain. Investors fear that one more nation in the Euro Zone may need a costly bailout. The concern is one of contagion. As the European economy suffers so do exports from China, trade with North America, and Euro-derived funds for investment throughout much of Asia. Using the so called blood in the streets analogy it may well be time to profit from a global stock selloff while depression rules the markets. This sort of strategy would be similar to a decision to invest in European junk bonds or Chinese real estate after their market collapses. To profit from a global stock selloff the investor needs to have a good sense of when the market has hit bottom and a good sense of which stocks will then have big upside potential.
When and Where Will the Market Bottom Out?
To profit from a global stock selloff an investor will need to go back to the basics. Fundamental analysis will help him decide just how low a give stock will fall. Technical analysis will help him spot a turnaround in market sentiment in order to most accurately enter the market near the bottom. The decision will not begin with picking a given stock but rather with picking a market. Has Japan already bottomed out due to the effects of the tsunami? When will China hit its low point in exports? Will overlooked stocks in the Euro Zone prosper in the long run with a weaker Euro? To profit from a global stock selloff one still needs to look at individual markets and then at individual stocks in search of the best opportunities.
A Close or Distant Time Horizon
When will an investment in a weakened stock turn to profits? To profit from a global stock selloff one needs to pick the most promising stock at the bottom of the market. The most promising stock may be one that is likely to rebound in weeks or months based upon changes in market sentiment. Or the best stock to profit from a global stock selloff may be a stock with very long term growth potential. Long term growth potential may well be the case with Europe. The likely solution to the debt dilemma will be for the Euro Zone to spend its way out. This will likely cause a substantial devaluation of the Euro. That same devaluation will make European products more competitive than they have been for years if not decades. A weakened Euro may well lead to stronger Euro Zone companies, more competitive products, surging Euro Zone stocks. One may choose to invest in Japan, invest in Russia, buy depressed Chinese stocks, or buy stocks in the USA.
2. Stock markets across the
world plunge on the news
of an increasingly severe
debt dilemma in the Euro
Zone.
3. In the meantime smart
investors can look for ways to
profit from a global stock
selloff.
United States and European
stocks fell on news of increased
borrowing costs in Spain.
4. Investors fear that one more
nation in the Euro Zone may
need a costly bailout.
6. As the European economy
suffers so do exports from
China, trade with North
America, and Euro-derived
funds for investment
throughout much of Asia.
7. Using the so called blood in the
streets analogy it may well be
time to profit from a global
stock selloff while depression
rules the markets.
8. This sort of strategy would be
similar to a decision to invest
in European junk bonds or
Chinese real estate after their
market collapses.
9. To profit from a global stock
selloff the investor needs to
have a good sense of when the
market has hit bottom and a
good sense of which stocks will
then have big upside potential.
10.
11. To profit from a global stock
selloff an investor will need to
go back to the basics.
Fundamental analysis will
help him decide just how low a
give stock will fall.
12. Technical analysis will help
him spot a turnaround in
market sentiment in order to
most accurately enter the
market near the bottom.
13. The decision will not begin
with picking a given stock but
rather with picking a market.
Has Japan already bottomed
out due to the effects of the
tsunami?
16. To profit from a global stock
selloff one still needs to look at
individual markets and then at
individual stocks in search of
the best opportunities.
17.
18. When will an investment
in a weakened stock turn
to profits?
19. To profit from a global stock
selloff one needs to pick the
most promising stock at the
bottom of the market.
20. The most promising stock may
be one that is likely to rebound
in weeks or months based upon
changes in market sentiment.
21. Or the best stock to profit from
a global stock selloff may be a
stock with very long term
growth potential.
25. That same devaluation will
make European products more
competitive than they have
been for years if not decades.
26. A weakened Euro may well
lead to stronger
Euro Zone companies, more
competitive products, surging
Euro Zone stocks.
27. One may choose to invest in
Japan, invest in Russia, buy
depressed Chinese stocks, or
buy stocks in the USA.
28. Whatever stock the investor
chooses he will want to optimize his
potential for profit from a global
stock selloff by making the best
market and stock picks and then
tapping into market sentiment with
technical analysis in order to buy
and sell at the most profitable
times.
29. For more insights and useful
information regarding
investments and investing,
visit:
.
