We know the economy will eventually get better. We are seeing things at the worse: the interest rates have hit bottoms never seen before, job rates are at all time lows, the stimulus package will take at least 6 months to start getting into effect, the stock market is hitting lows seen from year 2000. The DOW has continued its drop, now hitting below 7400. Many advisors assume that the market will drop below 6500 before things get better. One of the reasons is in April, many of the ARM loans will get reset. We will see another huge round of foreclosures, and the result is more lows for the DOW.
I suggest right now is a great time to just hold your money or buy some commodities such as gold. If you have a 401k, it’s a good time just to continue your dollar cost averaging down. You might as well just stay on the sidelines and let the things unravel while building your nest or paying off your debt.