Stocks may be chaotic, but they also offer opportunities if you look in the right place. Plunging stocks now make some sectors appealing.
If your first instinct is to run for the hills, don't do it, investment pros say. Those looming defaults by European governments – and perhaps other nations – may have a silver lining. That's because the same dynamics that have imperiled sovereign debt obligations might also be creating new opportunities.
What investors have to do is find those areas of investment that will outperform in an era of slow growth and possible government defaults. The debt crises point the way.
"What the sovereign debt issues highlight is not just a particular country's ability to pay or make good on its obligations, but rather the rate and pace of global growth," says Lincoln Ellis, chief investment officer for Strategic Financial Group, a Chicago-based money management firm. "Those kinds of structural dislocations do in fact create opportunities for investors."
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