There's a very good chance that today will be the day that we get the first official S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) correction since 2011/12. The index yesterday fell to a low of 5,414.30 points, 9.7% from the high of 5,996.90 hit in mid-May.
Why Today?
The Australian sharemarket has a tendency of following the US sharemarket's overnight performance. For those that haven't checked Google Finance yet this morning, the US market fell over 2% last night, meaning that we're in for some pain today.
10 stocks to buy soon
One of my favourite Buffett rules is to 'be fearful when others are greedy and greedy when others are fearful'.
If today doesn't represent a day when others are fearful then I don't know what is. Analysts, economists and pessimists everywhere are stressing over the possibility of Greece leaving the Eurozone. If they do, be prepared for further falls, and if they don't, you can be prepared for more falls based on the action the European governing body takes.
The great thing about this situation is that it presents us with the opportunity to buy great companies at great prices. Here are 10 great companies on my watch list right now:
- REA Group Limited (ASX: REA)
- G8 Education Ltd (ASX: GEM)
- Capitol Health Ltd (ASX: CAJ)
- BHP Billiton Limited (ASX: BHP)
- Flight Centre Travel Group Ltd (ASX: FLT)
- Corporate Travel Management Ltd (ASX: CTD)
- CSL Limited (ASX: CSL)
- ResMed Inc. (CHESS) (ASX: RMD)
- Nearmap Ltd (ASX: NEA)
- iProperty Group Ltd (ASX: IPP)
Why these companies?
Each of the companies above hold dominant positions in their respective industries and are unlikely to be directly impacted by a Greek exit from the Euro. Importantly, while they're unlikely to be impacted from a profit and loss sense, their share prices will likely fall and give us a great opportunity to buy.
