Investors say stay in stock market despite tough times


Posted on August 15, 2009 at 6:40 PM

Updated Tuesday, Oct 13 at 1:55 PM

(WHAS11) - A lot of people are looking at their 401k's, IRAs and investment portfolios, and their seeing their money disappear. An investment class at Thompson Investment Advisors saw this bear market coming. They got out of the stock market -- last November. But they're poised and waiting to get back in the stock market and say, you should be too.

"Pretty much I keep my money in my bank account... the stock market's a gamble, you might as well go to a casino if you want to win big," said one man.

But this investment group would beg to differ.

"The market sends off certain signals, and we're waiting to see if we should put more or less money in the market," said the President of Thompson Investment Advisors, Mark Thompson.

Right now -- they're investing less money. These investors saw this bear market coming a year ago. They got out of the stock market, held onto their cash and now, they say they're waiting for three things to happen -- possibly in the next few months.

"It's not over yet, we're waiting for the market to hit bottom and we haven't see that just yet," said Thompson.

Then - Mark says, they'll wait for the "initial rally" - when stocks are higher than the day before. And they won't get back into the market until that rally lasts for at least 4 days straight.

Watch this story

"That's our signal to look for leadership - individual stocks that are leading to move up - that will be a signal for stocks we would be interested in," he explained.

"Geez, are we ever gonna get out of this?" the group host asked.

They say, yes... eventually. And for those who aren't reading the market trends, here's Mark's advice for your investment portfolio.

He says if you're 20 to 30 years old -- stay invested.

"They should be committing the maximum amount of money they can."

He says, if you're 31-50 -- stay invested.

"Don't get discouraged because the long term trend is up -- eventually."

In fact, if you're still invested in the market, he says, stay in. Everyone EXCEPT "someone who's very dependent on those resources for the near term."

But he says patience is key and -- so is reading charts and numbers.

If you're interested in the class - contact Thompson Investment Advisors, Inc. at 502-473-1000. The classes happen the 2nd and 4th Wednesday of the month and are open to the public.