How Long Can The Markets Rally?

        I'm back! Yes, after a couple of weeks out focusing on school work and taking time off, I'm still well and alive. Now I've still stayed with the market and kept in touch with the news and obviously the markets seemed to have crushed expectations in January. Can it continue in February? Well the markets can get on these hot runs sometimes and so it seems that predicting when it will end is getting hard. Although the longer it goes on the easier it is to predict a correction. Its surely confusing but I've got some tips on how to predict the market the next couple of months.
      January was hot, real hot month for the stocks, and for the weather here in Chicago. Markets have hit highs and have kept going, some stocks setting all time highs. The markets are getting back to pre-recession highs. As stocks keep climbing when does the correction happen? Although it is hard to predict, with a hot record in January don't expect the market to keep the pace in February, in fact the correction will probably be sometime in late February or early March. Whatever it may be the gains that the markets have had are good ones and getting out now isn't a terrible idea. Many of stocks have pushed pretty far past its highs, and some stocks with good research could take your gains and scram. Main street still thinks the economy is in a midst of a slow recovery and is still hesitant. Although Wall street isn't and in fact seems to be crushing highs. Is it a signal to slow down? Not to rain on the party but every good thing most come to an end at some point. The stocks have not showed signs of slowing down recently but topping out is soon to happen. Don't get me wrong I'm not a pessimist, but i'm not a optimist either. A good quote to go by is "dear optimists and pessimists, while you guys were debating whether or not the glass was half full or half empty, I drank it, sincerely opportunist." That's the way you should look at investing. Stop debating whether or not things are bad or good, look at the facts and take action. Investors need to realize not to get greedy, or you'll get slaughtered. Take your gains soon. But that doesn't mean that you should put your money aside. Still invest it, research options, buy puts. Buy the correction, and although that is extremely risky and timing it is the hardest, you have the sense that it will happen soon, many investors will automatically have some sell offs the next couple of weeks and take the gains from January and following them isn't a terrible idea. Obviously some stocks have some potential to keep going up and that's why researching a strategy of how to get out is a good idea, and investing on the down side isn't too bad of an idea. With Washington still in a midst of debates on debt issues and it deadlines coming at the end of February and other dead lines after that, the markets could get spooked, and so stay in the market if the deals fly through Washington and the economy keeps pace, but the likelihood of that happening is unlikely, and a healthy correction is bound to happen soon. Emerging markets and options would be your best bet on the investing for the next couple of months. Read my article on "How To Invest Emerging Markets" and Invest With Care.