Wednesday, April 8, 2009

Everybody - Back Into The Pool!

"People fear when they should hope and hope when they should fear." -Jesse Livermore

If you have investment money that you've pulled into cash or a money market account, consider putting it back at risk in the stock market. If you don't want to follow individual stocks, you could consider a no-load S&P 500 index mutual fund available through low-cost online brokers such as TD Ameritrade or Scottrade.

Stocks are now in a bull market and have been for about 3 weeks. This is not hyperbole, the fact is that the major market indexes have been climbing higher for the past 3 weeks. They have all crossed above their critical support lines (50 day moving average) and stayed above them with conviction. The past 10 trading days have been marked by the indexes rising on higher volume and falling on lower volume.

As I wrote in this article, it is very easy to miss what is happening today - now - due to fact that our news sources always lag truly current events. Pundits and analysts are still busy trying to decide which industry sector or government bureaucracy holds greater blame for last year's problems. (or greater credit for its triumphs)

I'm asking you not to get caught up in all that. Consider this an inviting you to take a closer look at the data for yourself, along with me, and make the decisions you may have delegated to others in the past. If you lost money in the recent bear market, do whatever you need to do to get the upset from that loss out of your system so that you can do today what is possible to make a better tomorrow.

Disclaimer: I do not currently work as a stock broker or professional money advisor. The views I have expressed are my own opinions. Investing in the stock market entails risk, including the possibility of losing all of your invested capital.

2 comments:

Stacey San Pablo said...

nice disclaimer.

on another note, I'll have you know I read this before hitting the hay, even though I'm bleary-eyed and still in need of a bath. and it's late.

so there.

Mark Donohue Valor said...

Excellent, Stacey.

I hereby place a gold star next to your name on this week's roster, grant you a cookie, and [sniff] [sniff] - Dear Lord, woman! Take that bath now, will you?