It's a Good Time to Get Back in Stock Market

Steven Pearlstein: Get in while lots of people are still out

By John Johnson,  Newser Staff

Posted Sep 24, 2010 4:15 PM CDT

(Newser) – Bullish advice today from Washington Post economic columnist Steven Pearlstein: Get back in the stock market, specifically in "shares of large, solid dividend-paying companies." His "gut" tells him the market's pretty much done bottoming out. Why be optimistic? Because "so many other people are so pessimistic." Investors have shifted hundreds of billions from stock mutual funds into safer bond funds, and the resulting bond bubble is going to burst eventually.

When it does, "the smart money will move back to stocks or commodities," he writes. "That's likely to happen at the first sign that the economic recovery is picking up speed, or the first time someone from the Fed hints that zero percent interest rates won't continue indefinitely. That could happen in two months, or two years, but when it does, things will happen very fast, which means you want to already be in the market rather than fighting the crowd to get in."

A worker on the floor of the New York Stock Exchange.
A worker on the floor of the New York Stock Exchange.   (AP Photo/David Goldman)
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