Are You Ready for the Next Meltdown?http://www.fool.com/investing/general/2011/11/25/are-you-ready-for-the-next-meltdown.aspx Dan Caplinger
November 25, 2011
With the fate of the European economy hanging in the balance, we may be on the verge of another extended downturn for the stock market. But instead of making the mistake that many investors made during the last financial crisis, you need to realize that with crisis comes opportunity -- and you don't want to miss out on what could actually be your best chance to make amazing profits.
But along the way, the crisis gave investors some amazing opportunities for profit. Many of the financial stocks at the epicenter of the crisis lost nearly all their value, but most of them bounced back sharply, producing big gains for investors who were courageous enough to jump in when no one else would. Even today, JPMorgan Chase (NYSE: JPM ) and Wells Fargo (NYSE: WFC ) trade well above where they did in early 2009. Similarly, cash-strapped companies like Ford (NYSE: F ) and Las Vegas Sands (NYSE: LVS ) were priced for failure, but those who bet on their survival were richly rewarded.
This too shall pass
That doesn't mean that hard-hit companies like banking institutions National Bank of Greece (NYSE: NBG ) or Bank of Ireland (NYSE: IRE ) will magically return to their precrisis levels. But with investors punishing companies across the European continent as if businesses are going to stop functioning, there are already attractive bargains available -- and more