Market Turmoil

Regarding the academy awards, I found this article to be a compelling summary.

The market continues to be in turmoil as you are probably well aware. The Dow set a 6 year low and it appears that a new bottom could be set today. So what are we to do oh financial guru?? Well, that's the million dollar question. Against all reason, the last 4-5 months have not stabilized the markets seemingly at all. With lots of cash being thrown into the economy, inflation is a virtual certainty at some point, but when? Gold is at or near it's highs already however. Bonds will have a tough time retaining value in an inflationary environment, especially as interest rates move counter intuitively lower.

So where to put your money....if you have any? Well, as far as your 401-k investing, I don't think you should change your strategy at all. Regarding IRA contributions, if you can hold off making it until April (or later if you file for an extension) I would do that. By then, we should know if the stock market is stable again or if corporate bonds is the place to be or government bonds. Tax exempt bonds and inflation adjusting bonds should be reasonable alternatives in the short term. There are mutual funds that invest in them specifically.