The Perfect Storm

Everyone who is reading this blog is interested in Financial markets.

Everyone interested in Financial markets well know what it has happened during last weeks. Stock Exchanges have been oversold and the result is a deep loss worldwide with billions of euros of capitalisation burnt up. Of course Value Portfolio accused big losses too.

I think it is not over.

But I also think that every storm like this brings HUGE buying opportunities.

Why? all over the World there are a lot of excellent, highly performing companies that are now trading at P/E ratio very low. That's the famous 'margin of safety' so much loved by Benjamin Graham and by his bes fellow. Buffett, who else?

Now that the "massive destruction weapons" have hit the markets (as forecasted by Buffett long time ago when he was talking about subprimes, derivatives and other exotics things...), it will be time for the new rise up.

There will be some enterprises, excellent, that they will recover all the lost terrain that means, for example, that who has lost 33% could make a plus 50% to recover.

Of course: we do not know if the storm is already finished or not.

I think that the crisis is not finished yet, at all. Today the stock Exchanges are in 'green' thanks to the 'world rate cut', but tomorrow? No one can predict what will happen. For sure there is still a lot of companies at risk (insurances and still other banks maybe), the bank crisis reflects on lower fuel injection into enterprises that means low power to fight the recession.

I can just suggest to pay attention to all the great an good enterprises who are outof there, because they're trading in HUGE discount!

Some ideas? Well, you can read my past post: no one of the enterprises I suggested in the past are now in trouble, they're all safe, rich and powerful. Luckily for you, if you have a lot of cash, they're trading at an extremely attractive price!!

I remember a couple of years ago: a lot of analyst were saying that Buffett was crazy to hold 40bil $ in cash without using it to buy some assett. During last weeks, when all those analyst were probably loosing their jobs, the old Warren decided that his old friend called Market The Fool was giving away excellent stocks for very low prices and he decided to go for Shopping on Wall Street and he's not the only one doing that!