The market's uncertainty has leaked into the new week with investors once again taking a somewhat cautious approach to new share purchases.
Although it has now risen 0.5%, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) started the day in the red as investors continued to weigh in on Greece's 'debt crisis', with the country facing a nervous three-day wait. Eurozone leaders gave the embattled nation until Wednesday to agree to tough new reforms or else face bankruptcy.
As was the case last week, and the week before that, investors around the world have no idea how a bankruptcy and a 'Grexit' would impact the global economy and just how severe the contagion effect could be.
At the same time, investors are also cautious about what China's recent stock market massacre could mean. Although the nation's stock market staged a recovery late last week, it is still down an enormous amount over the last month which has had a profound impact on commodity prices, and thus poses as a threat to the Australian economy.
Thankfully, commodity prices rose on Friday night which is acting as a boost for companies in the iron ore sector today. BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) are up 0.5% each, although Fortescue Metals Group Limited (ASX: FMG) has given up 1.8% to trade at just $1.78 per share.
Each of Australia's Big Four banks also provided some much needed support with Westpac Banking Corp (ASX: WBC) and Commonwealth Bank of Australia (ASX: CBA) lifting 0.7% and 0.6% respectively, while Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) edged 0.1% higher each.
Elsewhere, Telstra Corporation Ltd (ASX: TLS) and Woolworths Limited (ASX: WOW) gained 1.1% and 1.5%, while biopharmaceutical group CSL Limited (ASX: CSL) jumped 2.7% to $90.39.
Your opportunity to strike it rich
Given the sharemarket's recent behaviour, there is no telling whether or not today's optimism will last, nor is it possible to ascertain just how much damage will be caused by more bad news emerging from Europe or Asia.
The fact is, investors hate uncertainty and will generally react negatively upon the first sign of danger – just as they have done in response to the two potential 'crises' mentioned above. The smart investors, on the other hand, tend to embrace this uncertainty and take advantage of the market's fear to pick up high-quality companies trading at bargain prices.
It couldn't be more obvious that there are a number of bargain opportunities currently presenting themselves to investors willing to take that chance.
The smart money is looking for up-and-coming smaller companies with huge potential
