Is it time to get back in the stock market?

The stock market has seen some improvement in recent months. It’s only a matter of time. Many people might have avoided investing in stocks after a prolonged period of severe recession and declining values. Ah, 20/20 is always a good thing! You might wonder if you’re one of these fair-weather investors and if it’s time to get back in.

You should never have gotten out. It has been repeatedly proven that investing in stocks is a long-term strategy that will have ups and downs. However, if your portfolio is well-managed and cultivated, you will reap the benefits. It’s difficult to invest with rationality and the means-to an end method, but it is possible.

But, could-woulda-shoulda; if you’ve already gotten out, let’s not cry over spilled milk. Instead, you can clean up your mess and buy common stocks while the unemployment rate falls. Stock market investors can take heart in the current economic indicators, which show that consumers are paying down their debts and increasing their savings. Meanwhile, corporations are improving productivity. It has been proven historically that the stock market increases in the third year after a U.S. Presidential cycle.

Economic experts predict that stocks will continue outperforming cash and bonds, but interest rates will likely rise in 2011 and beyond. Although there are concerns around food and energy prices, the U.S. is unlikely to experience out-of-control inflation, at least not in the immediate future. The USA, Brazil, Germany, and Brazil will outperform Japan and Spain in the remaining 2011 period. Research, invest, and keep your stocks in stock!

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