Is it safe to invest again?

The last couple of weeks have been a yo-yo for the stock market mostly due to the turmoil in Japan.  With that being said, there are plenty of signs that the economy is on the mend. And we know that businesses are amazingly resilient. For example, while the stock market has flat-lined over the past decade, corporate profits have more than doubled. Valuations have come down from nosebleed levels to reasonable ones. And while many businesses are still reluctant to hire, most have already begun the process of investing in capital equipment, software and new technologies.
A surprisingly strong reading of the Institute of Supply Management’s latest manufacturing report delivered a strong blow to the idea of a double-dip recession. Despite all the gloom and doom out there, corporate profits at public companies just hit record levels and many U.S. corporations have loads of cash on hand. What will they do with all that money? They’ll invest in money-saving technology, buy back shares, pay down debt, increase dividends and buy out other firms.
None of these moves are negative. In fact, all of them are positive for the stock market. And that makes now a particularly good time to invest in the companies that are able to save corporate customers’s money.