Money & Investing – Banks.com

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Investors are enjoying some optimism in early trading today as they greet positive economic data with enthusiasm. The U.S. stock market is moving higher today, across the board, as investors react to reports that the U.S. economy expanded in the third quarter of 2009, signaling the technical end to the recession. Credit is being given to economic stimulus measures that helped start some economic activity.

MarketWatch reports on the enthusiasm some have for the economic stimulus measures:

“While it’s far too early to declare ‘mission accomplished,’ it is crystal clear that the Recovery Act was crucial in pulling the economy out of its tailspin and putting it on the path to growth,” said Josh Bivens, an economist for the Economic Policy Institute.

Clearly, though, there is a long way to go. The economy needs to be able to continue to move forward with recovery without additional stimulus from the government. Also, there are concerns about employment. This is having a somewhat restraining effect on what could have been a runaway rally today. But, since employment is showing a slight improvement this week, and since lack of jobs helps company bottom lines in terms of cost cutting, this is probably not going to have a huge impact — at least for now.

Buying stocks

Obviously, the time to buy stocks was months ago. But with the economy heading higher, there is still time to get some good bargains. It is a good time to look for solid income investing stock opportunities, as well as choosing some good fundamentally sound investments that are likely to grow. Many people are also deciding to get into index funds and ETFs right now.

For those that have increased their contributions to investment accounts during the recession, it might be time to consider backing off a bit now that you can’t get as much for your dollar. Although, if you can afford to keep putting in higher amounts, it’s probably still worth it.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.