Here's your investing and trading plans for the next 15 months.

I opined earlier this month that stocks were at that point about fairly priced for economic conditions currently. Today I find that statement still valid.  However this past week has been one day of up 300 points and the next day down 250 points. All this volatility is causing some INVESTORS to either give up on the market or just take their money and put in bonds. Each person has to make their choice there, but for me I consider the situation quite differently.

As an investor I frankly am fine with the current market knowing that the market is valued correctly for the current economic climate. I am hopeful that the economy will improve and changes will occur in Washington next November that will improve those prospects. Europe is another matter and as long as you avoid financial stocks you will avoid much of the pain.  If Europe does get really stupid and finally let the economy blow up there then stocks will go down to match the fact that the world will again go into depression. The good news is that the problems in Europe will be addressed either by taking the correct budgetary options or it will be corrected by significant economic collapse where Europe can begin digging out of the mess in the right way.

As a TRADER I love this market. Reminds me of Warren Buffett's comment in the early 2000's when asked if he was again deploying his assets he said he was " like an oversexed guy in a whorehouse now is the time to invest and get rich".  Well if you are a trader this market is as good as it gets. I noted in my October hedge fund report this market activity will likely continue through 2012 and I am salivating at the opportunities it offers to make money as a trader as I clean out my portfolio at year end to position for 2012.

So settle down and relax, do not panic, wait and see if Europe and then the US makes the right choices in budgetary concerns and elections. Sometime early in 2013 you should get a clear choice of either salting your money away in bonds and going to the beach for a long visit or begin to invest money for real returns again.  If you are a trader settle in for what appears to be some good clean trading fun and profits.