Where Does the Stock Market Go From Here?

Where does the stock market go from here? For those of us who started the year skeptical, is it time to abandon our skepticism and jump in whole hog? For those of us who have caught all or much of the rally, is it time to start taking profits or is the best course to stand pat?

I ended 2011 and started 2012 saying that I thought the first half of 2012 would be scarily volatile and investors should keep their powder dry for a second-half rally after the People’s Bank of China cut interest rates. Wrong, as of seven weeks into 2012.

About two weeks ago I opined that the rally now under way would run through Feb. 29 — when the European Central Bank offered European banks an additional 1 trillion euros in loans. Until then, I said, it was safe to play the rally. After that, the odds of a correction would increase. Is that still true?

Let me give you my take on where we are now and what moves are most likely to result in good returns at less than market risk. Full Story

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