The stock markets have once again gone into panic mode. Investors are fearful of a Greece exit from the Euro and are dreading the repercussions it will bring. With such fear in the markets and dropping prices, opportunities are once again presented to those who have a long-term view of the stock market. Below is something I did up in Excel to show how much one can gain by buying stocks at depressed prices. Please be reminded that this only works if you buy fundamentally strong companies with good cash flow, low debts and good industry prospects. If a stock is down 10%, a gain back to break-even point is a 11.1% gain bagged. For example, a stock drops from $1 to $0.90 (a decrease of 10% from purchase price). For it to gain the $0.10 and back to break-even point, it has to gain ($0.10/$0.90) x 100% = 11.1% gain. The more the stock drops, the more you should rejoice as you can buy your favourite company at a cheaper price. When it goes back to break-even point, you make much more depending on how much the price drops. When stocks become cheap, valuations are low and the risk is low. When you invest during a market euphoria, the risk is much higher when compared to a market downturn. Therefore, one should always invest when prices are depressed instead of running away from the stock market. Warren Buffett has said that we should be greedy when others are fearful. The market is fearful now. Are you greedy enough?