Bargain-Hunting Amid the Wreckage

The market action on Wednesday, and on Thursday morning, serve as a stark reminder of why scale buying works best for value investors. As I've said repeatedly, it appears to me that there are far too many risks in the economy and financial markets to justify piling into stocks. Europe's problems are continuing to spill over into our markets there appears to be no fix in sight. The Federal Reserve acknowledged yesterday that the economy is in poor shape, and that is weighing on stocks, as well.

In addition, the Fed's "Operation Twist" policy proposal is probably the worst thing that could happen to regional and community banks. It is not great news for the mortgage real estate investment trusts, either. I'll be evaluating where I want to add to stocks like Annaly Capital (NLY), Invesco Mortgage (IVR), KeyCorp (KEY) and Hudson City Bancorp (HCBK). The CBOE Volatility Index (VIX) is rising again, so I will run some options screens and see if there are opportunities to back into long positions in cheap stocks, as well. If I was "all in" I would be running for the door and evaluating my next career....437 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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