Mexico's Carlos Slim, one of the richest people in the world, is known for investing during crises, when asset prices are depressed. He now considers the financial crisis in Europe to be another opportunity. I agree.
Valuations are quite depressed, particularly on book value. Investing in stocks with low price to book value ratios has provided among the highest returns over the decades compared to any other investment approach. It is not, however, a timing tool.
I suggest buying some European stocks with cash reserves, or even with proceeds from reducing stakes in emerging market stocks, which seem vulnerable at current levels.
I long have advocated maintaining significant cash reserves for attractive investment opportunities that come along. For those with cash, a strong stomach, and a long-term approach, European stocks now offer such an opportunity.