The Beat Goes On

Investors who lost a lot of money in the market last year are getting nervous again. After a 50% run up in the markets over the past 5 months from the March lows, people who stayed invested to recover their losses are wondering if it's time to get out. The so-called experts on CNBC and elsewhere have speculated that a correction is imminent. Economists have said that the recession is ending or already has ended. Inflation is not posing a problem yet, and the housing crisis has bottomed out. So much information. The market has shown time and time again, that it can and will correct itself. If you bet against the market, you bet against hundreds of years of data that shows the stock market beats other investments over time. Your decision is to decide how much to put in to the market, not when to get in and when to get out. Market timers have to be right twice.

So if you're worried about losing money in the market, adjust your allocation to stocks. If you need FDIC insurance, then you need to make sure you can live on 1-2% interest right now. For most people, that is not enough. Talk to your financial advisor to structure your portfolio for your specific goals and objectives and don't forget to add to your investments.

Stocks continue to rally as investors bet recovery is for real