Buy on the dip? Sure.

But which dip and when and what stocks?

I think the next few months will be especially treacherous to navigate. Yes, especially, even compared with the falling market of the past week or so.

That's because there will be more than enough volatility to dangle bargain prices in front of your eyes. And then to send some of those prices down even further. And there will be enough upside volatility to present plenty of opportunities to buy into rallies just before they fade.

In other words, the next few months will be a great time to buy high and sell low.

However, some of the bargains will be real. Investors will get a chance (or two or three) to buy stocks they'd like to hold for the long term at great prices -- if they have the discipline to stick with them during the scariest days. There will be a few stocks that outperform no matter what the overall market does because they dance to their own tune -- if you can hear it above the clatter of falling knives. And there will be stocks that have strong long-term trends at their backs, but where the trends have been obscured by the current market volatility.

Let me give you a quick sketch of what looks like a volatile summer, and then 10 specific stock ideas to fill out those three categories of stocks to buy on this dip (or the next one).

Greece is the word

Right now, stock prices are being driven by the eurozone debt crisis -- and particularly by the return of the Greek debt crisis to the front page of the financial section. This has ratcheted up fear and driven general selling of anything with any risk. Sell all stocks. Buy U.S. Treasurys even with the current negative yield after inflation. Buy dollars and sell euros (to an extent) and dump "risk" currencies such as the Australian dollar or the Brazilian real even though, in the medium run, it's hard to make a fundamental case for the dollar.

Image: Jim Jubak

Jim Jubak

With the U.S. dollar on the rise, the prices of commodities priced in dollars (oil and copper, for example) are falling. Gold is also in decline as the dollar appreciates (and as the likelihood of inflation decreases and as the Federal Reserve and the European Central Bank seem determined to remain on the sidelines).

Of course, the Greek debt crisis and its sidekicks, the Spanish and Italian debt crises, aren't the only volatility-inducing games in town. There's also fear that the U.S. economy is slowing after the May 4 disappointment on April job growth. There's also fear that China's economy is headed for a harder landing than expected.

A positive jolt

I think that by midsummer there's a good chance that both of those latter two fears will be shown to be less of a worry than they seem now.

For example, the JOLTS (Job Openings and Labor Turnover Survey) data released on Tuesday suggest that the weak job growth in March and April is a result of a seasonal borrowing rather than a replay of the collapse of job growth in the summer of 2011. (In 2011, after strong growth in February through April, job growth collapsed to 54,000 in May and 18,000 in June on its way to zero net jobs created in August.) The optimistic theory is that the drop to just 115,000 net jobs created in April, after a only slightly stronger March at 154,000, is a result of warm weather in January and February moving job growth to those months from the spring months.

The JOLTS data -- which track the number of job openings and the workers voluntarily leaving their jobs -- pointed to a stronger job market than that reflected in April's jobs numbers.

The consensus among economists right now is that both the U.S. and Chinese economies will show stronger growth in the second half.

Doing the drachma

Of course, even if that turns out to be true, for it to have any positive effect on the financial markets we first have to get past the fear that Greece will default (again, but this time officially) and abandon the euro as its currency. This will set off a chain reaction that engulfs Italy and Spain in its arc of destruction.

There are two problems with the current round of the Greek crisis. First, it is really, really serious. It is likely to force Greece out of the eurozone, and it could cause the collapse of the Greek banking system. Second, in all probability it is going to drag on for quite a while. Two months is my estimate now.

May was supposed to be a very busy month in Athens, with inspectors from the troika of the International Monetary Fund, the European Central Bank and the European Commission arriving to verify that the Greek government was living up to the conditions of the rescue package. The Greek government was supposed to be putting further budget cuts in place, and designing its next budget and a long-term plan for an additional $15 billion in budget cuts for 2013 and 2014.

I'm sure you can see the little problem with that: There is no Greek government. And, odds are that Greece is headed back to a new election in June. Even if that election results in a functioning government, that government is extremely unlikely to be strong enough to meet the troika's deadlines at the end of June.

Then it will up to the troika, which in this instance means mainly the IMF, to decide if it will release the next round of money for Greece, scheduled for August. The likelihood, European analysts say, is that the Greek government can scrape together the money to keep the doors open in June and July. But the demands of August -- a repayment of $3.8 billion euros on long-term debt, for example -- are beyond the means of the country without the troika payment, they add.

In August, then, the IMF and its European partners will decide whether or not to to pull the plug on Greece.

Unless, of course, a run on Greek banks takes place earlier as any Greeks who can get their money out of a Greek bank rush to do so before a Greek government freezes accounts and forces a massive devaluation on a conversion of euros to new drachmas.

The panicked but totally justifiable withdrawal of deposits from Greek banks would lead to a collapse of the Greek banking system, and the Greek government would be without funds to prevent such a collapse.

The short conclusion is that no one knows what will happen, the worst-case scenarios are really scary, and the crisis will go on and on with the financial markets increasingly on edge.

Continued on the next page. Stocks mentioned include McDonald's (MCD), Schlumberger (SLB), Freeport-McMoRan Copper & Gold (FCX), Baidu (BIDU) and IBM (IBM).

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