Scared Money Don't Make Money

Soon a moment will come when all will capitulate and those standing with hoards of cash will look to make a killing. We have seen the story play out time and time again, when the worst slaps you in the face, those who are willing to take on risk prevail. Look back to the summer and fall of last year when every investor was running away with the fear of the indices going to zero. Those that got into the quality names around that time and held into the rally of early 2012 were handsomely rewarded. Don't misunderstand me, those that bought bad companies were left with just that, bad companies (RIMM). So make sure you trim the fat off that portfolio, companies that will likely keep weighing down as the European hangover remains for some time. It looks like this hangover could continue to resurface in the years to come and the recession may last a decade.

At a certain point the markets become numb to the mess. If you get punched in the face again and again, at a certain point you throw up a block. Things are bad across the pond, but we have known this for a LONG time. There is a slim chance the end of the world (European Union) will come, but we have known this for a LONG time. At a certain point the markets are going to shrug it off as they have done before (many times). Those that are prepared to buy into the fear will prevail. At a certain point, which I am waiting patiently for, one should buy and prepare for greener pastures.