Rewriting the Record Books

October 3, 2007
By seadmin

Monday was the first day of the fourth quarter, and what a day it was!

The Dow surged nearly 200 points in the session, sending the Industrial Average to a new all-time high. The record-setting close on the Dow is just one of many this year, as 2007 has proven to be the year of rewriting the record books.

All three major averages, the Dow, S&P 500 and NASDAQ Composite, are now trading above both their short-term, 50-day moving average, and long-term, 200-day moving average.

In the chart below of the S&P 500, the recent spike toward a new high-water mark is quite easy to see.

There’s no doubt about it, the bulls are back, and they are back in a big way.

I know that I’ve been telling you to take a cautious approach to equity investing over the past several months, and I think that a cautious approach was more than warranted due to the circumstances at that time.

Now, however, circumstances have changed, and so too has my approach to the market.

The Fed now is on the side of investors. In addition, the Fed is proving to be willing to cut interest rates to help the credit markets. That willingness to cut rates is the tonic that I was waiting for to see if the bull was truly back. And although it took a little while for stocks to fully react to the Fed’s move, I think it safely can be said that now is the time to get back into the market with a hefty chunk of your investment capital.

Subscribers to my Successful Investing advisory service have spent much of this year on the sidelines, waiting for the right opportunity to jump back into the market. Well, given this week’s record move in stocks, the right opportunity is now.

I recently recommended that Successful Investing subscribers take an aggressive allocation to broad-based domestic and international exchange-traded funds (ETFs) and mutual funds. I’ve also recommended an allocation to several sectors and sub-sectors of the market that I think have the potential to really outperform the average market return.

If you’d like to find out how to take advantage of this fantastic new bull market buying opportunity, click here.

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