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Tags: sean | hyman | europe | assets

Europe Puts the World’s Assets ‘On Sale’

By    |   Sunday, 27 May 2012 11:38 AM EDT

I love a good deal. Right now, I’m buying up furniture, etc. for my next house I’m closing on. I don’t go to places and “buy new” 99 percent of the time. I look for bargains. My wife taught me this. She’s a heck of a bargain shopper.

We do a lot of shopping on Craigslist and hitting up garage sales in very affluent neighborhoods. (I hate to pay “top dollar” for things that only go down in value over time.)

For instance, we just got some custom furniture that the original owners paid around $20,000 that we got for one fifth of what they paid for it. Big difference huh? They took a hit on it that I’ll never take…yet the items are in top-notch condition.

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Well, “the world” is now on sale. Let me explain.

I know the entire world is worried about Europe and for good reason. It’s not just Greece. Spain and its banks are in trouble, too.

However, when all of this hashes out, Europe will still exist. So will Greece, Spain and any other small European country. Their stock markets will still be around, etc.

So there comes a point to where all of this gets overdone to where investors can never see a day where this will all turn around. I’m not saying that day is today or tomorrow by any stretch…but I am saying that savvy investors need to be on the lookout for the turning point from all of this.

There will be a bottoming point. In fact, around the globe, things are starting to get better than they were last year. So right now everything is “less bad”.

For instance, over the last year, there are only about 12 stock markets up overall during that time. However, as it stands right now, there are just over half of the world’s stock markets up year-to-date.

So while things are still bad, no doubt…they’re getting “less bad”. When that starts to happen, a bottom is usually not too far off even though the sentiment in the market will remain bad for far longer after a bottom is formed.

But it’s not just stocks that Europe is bringing down. It has brought down commodities too. For instance, out of 19 commodities that I closely watch, only two of them are up over the past year (ethanol and gold). Everything else is down. Check it out below.

Story continues below chart.

click on chart to enlarge

Why? Fears in Europe have slowed down economies as corporations have been afraid to spend and expand and while investors have been afraid to contribute capital.

These scares have slowed down the global economy which caused the demand to back off of commodities.

In essence, Europe is putting stocks and commodities “on sale”. We may be seeing bargains right now that won’t be seen for a long time to come. So I’ve been nibbling away at some stock gems in some of these beaten down sectors like natural gas and oil.

My natural gas pick is up 11.5 percent in under 60 days from the purchase date.

Don’t get me wrong…some assets still likely have further to fall. But there are some bargains that are starting to emerge and I’m pouncing on them.

You see, the great values present themselves when everyone else is still scared, negative and fleeing stocks. When everyone is running for the exits, that’s when you want to begin to run for the entrance.

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Well, in certain sectors of the economy, I’ve begun to run for the entrance. My Ultimate Wealth Report subscribers have been enjoying this ride along with me.

There’s an art to stock-picking. You’ve got to be willing to make the tough calls that no one else is willing to make. You’ve got to see value when others simply don’t see it because of the blinder of fear. You’ve got to remain rational and keep your head about you when almost no one else is doing the same. It’s a lonely road but yet it’s a profitable road.

So watch for the bottom. Realize that there will be a bottom and keep your eyes peeled for it. By doing this, you’ll be actively looking for what others think may never come again. Then you’ll be there to scoop up the bargains like I am.

Have a great week.

About the Author: Sean Hyman
Sean Hyman is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He is also the editor of Ultimate Wealth Report. Discover more by Clicking Here Now.

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Sunday, 27 May 2012 11:38 AM
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