Thinking of Investing? Now Is A Good Time [AUDIO]
We're only four months into the new year and stocks are up 11 and 12 percent, already having surpassed year-end predictions. It doesn't look like they will be falling any time soon.
"I've been looking for a bull market like this for quite a while. I just didn't expect it to come charging out of the gate like Secretariat did," said Ken Kamen, President Mercadien Asset Management. "But, the market is in great shape. There are a lot of things coming into play."
Corporate earnings continue to stay strong, earnings continue to remain positive and while the United States is growing slowly, it's growing at a stable pace.
"You're seeing slowdowns in China and some uncertainty in Europe. But, you have to remember stocks provide some inflation protection and people are not getting that in the bond market and they certainly aren't getting that in the bank. So, as you're starting to see markets reach new highs, people are starting to feel more comfortable about coming out of the mattress with their cash," said Kamen.
So, what will the rest of the year bring? Kamen predicts the market will continue to move higher, but there will be dips along the way. If you're thinking about getting into the market and investing some cash, now may be the time.
"You don't want to come in or out of the market all at one time. People who have a lot of money sitting on the sidelines who feel like they're missing the party, it's time to start coming into the market gradually maybe by buying every month or every quarter at equal amounts. This way, you reduce the risk of timing the market wrong. If someone has a lot of cash and it's sitting in the bank earning nothing, they may want to consider a well-diversified portfolio of equities. Timing looks very good," said Kamen.
As for the rest of the year, Kamen is optimistic.
"When you take the political angst out of the mix, the fundamentals in the United States economy look very, very positive. Businesses are doing very well and I would expect that to continue for the rest of the year," he said.