"Italian bond woes. That's why I am selling."
Does anyone admit to doing that? Does anyone say that's why they are selling Ross Stores (ROST) or AT&T (T)? Does anyone ever, point blank, say, "The Italian bond market makes me worried about Exelon (EXC)?"
The only reason I ask is that it is pretty obvious that if you think like that, you think that those stocks and others of their ilk are going to take it on the chin, may I suggest you go all cash or plenty short?
Because Italy is not going to be solved anytime soon. It is a grind issue, meaning the Italians and the French and the Germans and everyone else will just grind on toward, well, nothing, because without economic growth you are just going to endure endless days, months and years of torture.
So pick stocks you think shouldn't be directly affected, own them, check in on them constantly, but be sure that if they go down 10% on a day when Italian haircuts are issued, you have the firepower to buy more.
Or maybe you really do believe that Italy will wreck Bed Bath & Beyond (BBBY). If you do, get the heck out, because that means you are thinking everything's going to be destroyed.
Sorry, but that's how you have to look at it.
