IRA Investing: Safer to Buy Stocks Now

Richard Moore, CFA, writes about strategies for asset allocation in IRAs.

Stock-market volatility certainly continued last week on both the upside and downside. The media further brought out the recognition and acceptance that we have some serious economic problems as the economy was discussed on the Sunday news programs.

Interestingly, the market totally flip-flopped its leadership, with the financials extremely strong and commodities turning much weaker.

My indicators continued to improve last week. A couple of them are at extreme levels not seen in at least five years. The equity put/call ratio is one of those indicators and is calling for at least an intermediate-term bottom in stock prices. Similarly, the difference between the confidence levels of smart investors compared with dumb investors is also at an extreme bullish level. ...