Preparing for the Worst From Europe

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

The European Summit is being held on Thursday and Friday of this week, and there's a lot of uncertainty around the eurozone at the moment. Yesterday, the Dow Jones Industrial Average was down 1.1%, and the S&P 500 was down 1.6%. That was the third down day out of the last four for both indexes. David thinks investors should plan for a possible bad outcome in Europe, and recommends a strategy of "prepare, plan, and pursue." In other words, investors should prepare themselves for volatility. They should plan their investing strategies. And finally, they need to pursue a long-term strategy that they believe in. Ultimately, investors will need to have courage to buy when fear is in the market.

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David Meier has no positions in the stocks mentioned above. John Reeves has no positions in the stocks mentioned above. The Motley Fool owns shares of Intel and MAKO Surgical. Motley Fool newsletter services recommend Intel and MAKO Surgical . Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On June 26, 2012, at 3:04 PM, apoorboy wrote:

    The VIX is up. The markets are widely oscillating, along with the sentiment. Usually that means we're headed for either a big rise or a big drop. Given the long-term situation in Europe and the USA, I'll bet on the big drop. Stay safe!

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