Good day to buy stocks

stocks down Pictures, Images and Photos

The stock markets around the world and especially in the U.S. will likely close lower today due to the failure of the U.S. Congress to raise the debt limit and agree on debt reduction. Although there are other factors that may impact stocks going up or down, it looks like this issue will prevail on the day. It may even cause the markets to drop quite significantly. If this does occur, to me this signals a great stock buying opportunity. I won’t give suggestions on which stocks in particular because it doesn’t matter that much here.

As long as the stock you are looking at is not dropping today because of other reasons besides fear of a U.S. default, it is a good stock to buy. Of course, you should always do your homework on a company before you invest in it, but if everything about that company and stock is good and the only drag on it is the nonsense Republicans in Washington, then double up on those stocks. I still believe that the U.S. will eventually raise the debt limit, probably right before or very soon after August 2 (the deadline). The longer term debt reduction will likely only occur after the 2012 elections, but the stocks will likely rebound as soon as the debt limit is raised.

Although the House Republicans are causing turmoil and frustrations for everyone in the world, this is the bright spot. This investing strategy is good not only for this day but any time where you see that some short term, fear induced news headline is driving the markets down. This is exactly when you should be buying even though everyone else is selling. This is how real money is made in the stock market.