The possible loss of eagerly anticipated labour reforms, financial restrictions and market contagion provide shorter term sources of turmoil. However, existing reforms are likely to continue, market retrenchment is healthy and to be exploited for longer term opportunities.
Investing is a voluntary activity, and it is our decision as investors, even part-timers, how much we choose to understand the products we trade. The information is generally out there, and if it's not, we can choose to pass.
The current financial markets are experiencing high volatility, gaining and losing in excess of 3% on a given day. Whether the current volatility is without a precedent, however, depends on how volatility is measured.
The oil price has skyrocketed over the past few months and the finger often points to Libya and claims of supply disruptions have dominated the press. However, are these claims grounded in fact or are we watching yet another sentiment driven bubble?
Bear markets are difficult experiences, but they provide unique prospects. I believe we will look at the present U.S. stock market valuations as perhaps the best investment opportunity of a generation.