I’ve made several comments in the past few months about the market’s need to finish its selling cycle. Usually that type of language produces confusing looks and some asymmetry in your eyebrows. Let me explain in more detail because it’s all happening now according to “plan” and we are approaching a very important moment in the US stock market.

Today, I am looking at a discounted market. I don’t know if this is the final low but I do like the opportunity that is upon us now if our pure objective is to buy market discounts. I suspect we may have a few scary days left in this decline between now and the first couple weeks of July but I will give the OK to put new passive money to work in here. If you want to do it in steps, that’s another option. For instance, I still have another $11,000 to contribute to each of my kid’s 529 plans in 2008 after putting in $11,000 each in March. You are allowed to contribution $11,000/ per child/ per parent/ per year. I put another $5000 in this morning and will do the remaining $6000, once I see a confirmed low. I’m guessing that I’ll have to get that done at a higher level but who knows. I am recommending a general growth allocation for all at this point which is not more than 30% bonds and at least 70% stocks (mixed between domestic and international). Call if you want to discuss your individual situation. Good luck.