Market undervalued and your buying bond funds?

Lost in all of the hullabaloo over Apple’s dividend, oil prices, Iran, and so on
is the fact that the market is undervalued—and has been for most of the past
year, according to Morningstar’s fair value estimates

What I know about valuation methodologies could probably fit on the head of a
pin, but that’s what Morningstar’s analysts do all day. When they look at where
stocks are selling relative to their estimates of fair value, the market as a
whole—and even most sectors—is still undervalued.
Retail investors have been incredibly reluctant to re-engage with the stock
market since being burned in 2008-2009. For a couple of years now, much more
investor money has been flowing to bond funds than stock funds. I’m just not
sure if that is a rational move when stocks are undervalued.

For those that are in-What should you do?

If you are an investor, you should not be thinking about when to jump out, and move to all cash/bonds position. Instead, you should be looking for a variety of signs that suggest it is time to lower your equity exposure as a function of rising risk relative to potential gains.Indeed, the action most people engage is called market timing — jumping in and out based on expectations of an imminent crash or rally. Instead, I would suggest they would be better off eschewing market timing and instead focusing on risk management. This is a process by which the investor raises or lowers their equity exposure based on factors other than expected short term market returns. This means your goal is not catching tops and bottoms, but generating good returns on a risk adjusted basis.

A picture of 10 year treasury vs s&p not pretty for bonds

If your in a bond fund in your 401 k this is what it might look like
Have been harping for many many months to get out of bonds.

Treasury Yields on the Rise

Did you like Treasuries when yields were at 2.00?
Then you should REALLY like Treasuries now.The yield is up to 2.24%

Read more: http://www.businessinsider.com/interest-rates-are-exploding-higher-today-2012-3#ixzz1p6g3r4K3

Of course if your holding a bond fund your going to find out that the value of your fund is dropping
I've been telling people for many months to get out of bonds-especially in your 401k

Market Crash comming?

John Hussman will be right one day but until than just stay with the trend


http://www.advisorone.com/2012/03/12/doomsayer-hussman-says-market-crash-comingaccordin?t=income-planning&utm_source=retirementreport031312&utm_medium=enewsletter&utm_campaign=retirementreport

Bull Market

According to Bloomberg Businessweek, this
bull market has serious self-esteem issues. We are almost exactly three
years from the March 2009 low, but fear of the market still has not worn
off.
Next week marks the third anniversary of the current bull market cycle in
U.S. stocks. Back on March 9, 2009, a day not easily forgotten in the annals of
wealth destruction, the S&P 500 sank to a 12-year low of 676, the bottom of the worst bear market since the Great Depression. Since then, the S&P has more than doubled.
Investors for the most part are still curled up in the fetal position,
preferring to put their money in bonds and money market accounts rather than
stocks. Investors have pulled more money out of U.S. domestic mutual funds than
they’ve put in for five straight years.

Market surging -individual investor missing it

http://online.wsj.com/article/SB10001424052970204571404577253691991108830.html?mod=e2tw