stock market

After the second election, we went to 90% in cash money market. Should have waited but he scares me. Do you see a major correction in 2014, or should we jump back in?

Terry Says:  I never give stock market timing advice!  If I were that good at it, I’d be spending my time sitting in front of a computer and trading.  Those who have followed me know that for those still working and preparing for retirement, I always favor an ongoing and regular program of diversified investing.  And I pleaded publicly with everyone to continue that pattern even during the worst of the financial crisis.

Of course, the percentage of your assets exposed to the stock market may vary according to your age, how close you are to retirement, and your own circumstances.  As well, you always want to “rebalance” so that if one of your investments makes a lot of money, you take some off the table and diversify it to maintain your investment plan.

What you did is completely contrary to the way I approach investing.  I never “jump out” or “jump in.”   That means I’m never “all wrong” or “all right”!    I just know that I can never out-guess the market!

I don’t know anything about your personal situation, your risk tolerance, your age, your needs, so I can’t even begin to give you advice.  Yes, there will be a correction — sometime.  I have no idea when.  And I won’t know whether it will continue into a bear market once the “correction” starts.  I will just try to be positioned to avoid the kind of panic that you describe.

I would suggest talking with a certified financial planner (CFP) — and getting an overall view of your financial situation.  Search at www.FeeOnly.org — financial planners who do not charge commissions on products they sell.