Markets rebound this week

After the Fed Chief reassured the market yesterday at the FOMC meeting, the broad market rallied. Cash sitting on the sideline is entering the market again. Pension funds such as CALPRS with its billions of cash on hand are now returning as well. What does this all mean for investors? Well, if one bought in on Friday of last week, when DOW plunged more than 290 points, you would be smiling. But for the rest of the us, what do we do? Should I buy in now, and risk the market volatility? Should I hedge against that risk by buying index funds? Should I diversify with investments into emerging markets, where a upturn in U.S. market usually leads to their markets soaring a day after? The answer to all those question is a solid "YES".

Here's what the market looks like, taking a snapshot of it during lunch time ET. The upbeat technology news, along with strong gains in beleaguered financial and home building stocks, came a day after the Federal Reserve said that despite an increasingly difficult credit environment, the economy should keep growing moderately. "Basically, the Fed's telling us we're back to business as usual," said John C. Forelli, portfolio manager for Independence Investment LLC in Boston.

In midday trading, the Dow rose 64.95, or 0.48 percent, to 13,569.25, after briefly rising more than 100 points.

The Standard & Poor's 500 index rose 12.31, or 0.83 percent, to 1,489.02.

The Nasdaq composite index and Russell 2000 index -- which include technology companies and small-cap stocks -- made even sharper gains.

With the broad market rallying, and with a broad based increase, you can profit from the momentum. However, I do not believe the volatility is far beyond us. Investing in markets outside of the U.S. would provide growth to your portfolio. If you feel uneasy about investing in foreign markets right now, then you want to look into high dividend yield companies. Some of those companies are natural resource providers, amusement parks, and financials. A solid one from the group is a propane gas distributor in New Jersey. The stock is hitting a bump in the road after climbing 90% from a year and half ago. This bump, is a cyclical slowdown in heating needs in the East Coast, combined with the overall market sell-off we had. But going back to the basics: There are not much need for heating during the summer times, as one could imagine. But comes winter, all the snow in the East Coast and Mid West, where this company distributes heating energy, will have a strong demand for their products. Hence, buying in now, you would be looking at a easy 5% gain by winter, coupled with their attractive 7% dividend they provide their shareholders. I would rate this a strong buy: SPH

Here's also a list of stocks with positive earnings this week for your to consider.

AXP, C, CSCO, CTX, PCLN

They all have nice gains today, and with solid earnings will continue to look attractive for investors.