Today in the Stock Market

Today the stock market is set to get off to a good start as investors anticipate positive numbers from the labor market and inflation statistics.

The Consumer Price Index is expected to be up 0.1%, once you exclude food and energy costs. If you add those core sectors back in, the CPI is expected to be down 0.1%.

Jobless claims fell by 2,000, which I don't think is a pretty percentage, but it does represent a decline that probably has nothing to do with the 2010 US Census.

Another piece of good news that you've seen me talk about before is that BP has decided to cancel their dividend. This was truly the only logical and ethical thing to do and I am glad to see it happening. My only wish is that they had stepped up to do this sooner instead of leaving everyone in limbo for so long. It would have been a real chance to improve their public image.

What stock news are you watching and waiting for today?

Does the Stock Market Scare you?

If so, I understand. Having lost a substantial amount of my own retirement to a dip in the market, I know first hand the feeling that comes from opening my quarterly 401k statement only to see a number much lower than I expected. My gut sunk. It was a bad feeling.

So, now I have a strategy for how to approach the stocks in my 401k portfolio. Here is my first tip for becoming more comfortable investing in the stock market.

1 - Diversify. This is always the first piece of advice people give when talking about stocks. And that is because it is true. But it you are truly worried about the stock market, don't just pick stocks from different sectors. Invest some in bonds or other cash equivalents. Common wisdom suggests that the further you are from retirement the smaller your bond investment should be. Then, as you get closer to retirement, you should begin transitioning more of your money into cash equivalent investments to protect the assets when you need the the most. A target-date retirement fund can achieve this same goal.

Check back tomorrow for my second tip for becoming more comfortable investing in the stock market.

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