Value City

For all of you who have seen your 401k portfolio loose 10% over the past few months, don't worry. Hopefully you do not need that money right now.

This morning U.S. stocks headed for yet another sharply lower open Monday as stock markets tumbled further around the world on worries about the health of the global economy.

A surge in the yen illustrated investors' nervousness about how much economic activity could slow. Japan's Nikkei 225 index dropped to its lowest close in 26 years as investors worried that the high yen will hurt Japanese exports and further disrupt economic activity. The currency moved to the 93 yen level.

This tell us that we have not yet seen the bottom and that market volitility is still an issue. For the casual investor this offers an oppentunity. Equities are cheap right now.

Example 1: this company is trading a 11x forward earnings, pay a very good dividend and is debt light and cash heavy, Microsoft. Microsoft is a high quality stock and is a value right now.

Some others include Dow, Becton Dickinson, Disney and Quixote are all good picks.