5 Things Every Investor Needs to Know About This Market

The third quarter is coming to an end, and after a rough summer, investors are
looking for ways to end the year with a bang. Last week, I discussed fresh picks
for the autumn and I think those stocks will serve you well in the months ahead.
But there is a lot going on in this market, and its important to understand
exactly which factors are impacting stocks and what it means for you. This is
why today I want to discuss current market conditions and what you need to know
to navigate them. The following are five tips I think every investor should
know: 1. European Debt Clouds the Market Last week, we saw the Dow tack on 500
points over the course of five days. Then, Monday, it fell more than 100 points.
Much of the volatility can be attributed to concerns and optimism over Greeces
debt dilemma. For months weve watched the saga unfold. Despite budget cuts and
new policies, Greece has not been able to get a hold of its growing debt. The
countrys impending default has raised concerns and sent markets reeling
worldwide. Even with nations offering assistance to bailout Greece, it hasnt
been enough to pay off the countrys approximately $500 billion debt. Greece
hasnt been the only European country in the news in recent months. Several
including Portugal, Spain and Germany have had their own difficulties. Now that
the European Central Bank is stepping in, further questions are arising. A
debate over allowing the default vs. bailing out Greeces troubled economy is
raging. It is uncertain how each scenario will impact the European economy, and
all the countries apart of it, in both the short term and long term. So how does
the European crisis impact us across the pond? Well, weve already seen the
weight it puts on the markets. A large part of the volatility they experienced
this summer can be attributed to European economic news. The fact is U.S.
businesses have close ties with European companies, as well as all across the
globe. When one region is in trouble, the others feel the sting. Investors
become understandably wary when global economic problems occur because its
inevitable that the U.S. economy will experience some of the aftershocks. But
its important that investors remember that there are smart investments to make
in the current market. I will discuss these a little later.