Bear Market Rally

If this is it, it's about time. We've been at multi-year lows for a while, with very oversold conditions. Noticeably, the financial sector is making good headway. That is pretty typical as it leads us into and out of recessions. It's not time to back up the truck and buy. If you are more of a speculator, or have long term views, and are willing to ride some waves, you might start to invest new money. If you can't stomach things then wait. I don't think this is the end. I hope it is, but more confirmation is needed.

Even though the markets are leading indicators of the economy by about 6 months, our economy is far from "cured" of it's ailments. On the contrary we have a ways to go before the patient can leave the hospital.

I would start to add to your wish list of investments now, and maybe start very small positions that can be added to later, but wait to buy in earnest. Also, closely follow the precious metal markets. They are getting beat up right now, but should be good buys going forward. Long term lookers must know that inflation will come back and the metals will be the recipients of huge moves.

These market rallies are necessary for consumer confidence as well as to scalp some money to not make positions look so bad. Remember, us individual investors don't do anything in the market except ride the waves. But you have to be ready at a moments notice if you want to profit.