Even though they moved lower, the momentum to the downside is waning. A portion in a balanced fund is good. A bigger portion in the index fund would also be good. Diversity is the most important thing because no one can call the market all the time. In a bull market it is so easy to make money that everybody seems like a genius.
Stocks just keep moving up.
This is not a bull market, and therefore each stock has to be judged by its own merits. A solid balance sheet and good prospects for earnings are paramount. I was impressed with the price and volume action today in the equity markets. The first step to a reversal begins with short-covering. We had that today.