Monday, January 11, 2010

Stocks should show some solid top line earnings

It is the beginning of the earnings reports for the fourth quarter and I am expecting some pretty good reports.  These positives should propel the market even higher, but selective buying at these levels is a must.  Know what you are investing in and be convinced by your research that the momentum is going to be there to carry your portfolio to new heights.  GE, Alcoa, IBM are my favs for this week.  
If you are getting nervous and want to move some money to bonds, please don't.  It is okay to sell and take some money off the table, but stick with the low yielding money markets as a place to reinvest.  I am very leery of bond funds or individual long term (over five year) bonds right now because as interest rates start their march higher in the next few months, the value of your principal will will decline at a rate greater than your interest return   Be careful.

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