Tuesday, April 14, 2009

Back in the stock market!

I decided to get back into the stock market yesterday. I realized I hadn't made any contributions to my Roth IRA for 2008 while doing taxes. And when I did make a contribution, I decided to invest it as well.

Although consumer confidence is low, markets are crashing, and it's a recession, I think it's a good time to at least test the waters because:

1) Historically, whenever officials declare it to be a recession, we are already 1-1.5 years into the recession and the bull market or recovery has already started

2) Even if we havcn't bottomed out, it's really hard to time the bottom, and we are probably much closer to the bottom than we are to the top. 

What makes me nervous is that the DOW has been struggling to cross 8,000, which could mean it has found a ceiling and will start dropping again.

I decided to invest in two ETF's. A solar energy fund (TAN) and Brazil (EWZ). My reasons were very simplistic. Both are hammered right now. Both are definitely going to grow in the future. I'm watching the market closely and hoping I am right.



 

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