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Allow Europe To Shake The Markets Out, Then Add To Positions

Posted on | September 9, 2011 | Comments Off



The European debt crisis isn’t going away. I have a feeling that it is going to come to a head very soon. When it does, it will be massive volatility and that will be the best time to add to positions for the stocks you want to own long term.

Philip Morris Int’l (PM) is one of the stocks that applies especially to this. The reason is that PM is affected big time by Europe. A large percentage of their sales come from Europe. This doesn’t mean the business is at risk, but it will be affected in the near term more by the volatility in the currency markets.

When the Euro drops against the dollar, it is a headwind for PM profitability. This tends to move the stock in tandem with the Euro.

As the European crisis hits a head, the Euro should drop. This is when you want to buy more Philip Morris.

Volatility isn’t going away so be prepared to act when stocks become very cheap.