Kiplinger: Invest Now. Really?

Hard to see how the July 2013 issue of Kiplinger’s Personal Finance magazine could be more bullish about the 2013 stock market. In a featured article, Anne Kates Smith writes:

“After a blistering 21.8% run since last November, the market is due for a pullback — and it's the time of year when we often get one.

“Still, those who've been waiting for a big decline to commit to stocks have so far been disappointed.

“If dips lure investors from the sidelines (or from the bond market) into stocks, then corrections could be short-lived and shallow. So don't wait.”

Anne presents Kiplinger’s purchase recommendations, starting with SPLV (PowerShares S&P Low Volatility) and VDIGX (Vanguard Dividend Growth).

I hold Kiplinger in high regard, but I do know the future is never known but always guessed. I know, too, that S&P 500 fell 1.4% and 22.48 points yesterday.

You and I know the market is driven by emotion—mostly fear and greed, and there's no shortage of either just now. 

To visualize what the market has been doing of late, with a hint of where it may be headed next, see my Yahoo chart comparing the direction of my favorite down-trend no-load fund (GRZZX) with that of my favorite ETF  up-trend responder (VTI). 

Also, check out my Yahoo chart with an alternative tool for guessing where the total stock market is headed. Using this chart, you might want to consider selling some, most, or all of your portfolio when VTI’s 20-day moving average dips below its 50-day moving average. The decision can be only yours to make.

Never forget: All investments and savings are gambles on the unknown future and thus subject to loss.