Thursday, July 16, 2009

You make the call

So here's where we are right now. The stock market is having a great week thanks to earnings surprises from companies like Goldman Sachs, JPMorgan Chase, Google, and IBM. More good news is expected later from General Electric and others. This has kept bad news from CIT from ruining the fun. The market is trying to recover from 4 down weeks, after it's 40% run up from the March lows. Pundits are now seeing the Green Shoots and signs of recovery from this economic crisis and recession that has dogged the world for the past 19 months and counting. Inflation fears have been abated for now as there is a more short term concern of deflation. While inflation could come back, it is not expected to be a problem until 2011 or later. Still, some bears out there are not convinced and are predicting a retest of the March lows, one call for the S&P 500 to drop to 600 and so on. So what does all this mean for the small investor? Stick to your plan. Invest in the areas you need to be in. Monitor your investments and make changes as needed. A long term view is still better than a short term look out the back window. Stay diversified and keep saving. Putting your money under the mattress may make you feel better for a moment, but it will not help you reach your long term goals! You gotta make the call!

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