Investment Strategist suggests that investors would be wise to average their money in over several months

“A price correction can occur at any time and exogenous events can happen at any time to rattle the markets—suggesting that investors would be wise not to push all of their cash into the market at one time, but rather to average in over several months to smooth out some of the volatility inherent in the market,” said Liz Ann Sonders, Chief Investment Strategist.

Investors who've been waiting for a "correction" to put money to work in the market have watched a steady climb higher as they sit in cash—earning next to nothing. Pundits have been calling for a correction for weeks now, but it must be noted that can be accomplished through time or price.

With the recent churning action of the market during a relatively robust first-quarter earnings season, we believe we saw at least a partial correction in terms of time. Positive earnings results and outlooks with little price movement allow the fundamentals underlying the market to catch up to the price action.

We've been encouraged by the resilience of the market in the face of numerous challenges. Fraud charges by the Securities and Exchange Commission (SEC) against a major investment bank, continued eurozone concerns (centering around Greece, Spain and Portugal), financial regulation concerns, a slow return to normalization by the Federal Reserve and tightening by numerous foreign central banks haven't been enough to knock the market back too far. We continue to believe the economic recovery is underappreciated and enough skepticism remains to leave us relatively optimistic on the market's prospects for the next few months.

A sporadic bottoming in housing, a soft employment market, low-capacity utilization and continued very low readings on core inflation allow the Fed to take its time in raising rates, helping to solidify the economic recovery.

From an international perspective, declining confidence in the ability for eurozone governments to borrow at reasonable rates, without implementing further fiscal consolidation that could dampen economic growth, is creeping into other markets. There've been notable increases in the two-year government-bond yields of Greece, Portugal and Ireland, up more than 10%, 2.5% and 1.5%, respectively, during the past month.

The rout in Greece and spillover effects to other weak countries will result in continued downward revisions to eurozone growth forecasts. Fortunately, US banking system exposure to Greece is at a miniscule 1% of GDP. The continued very low TED (Treasury-to-Eurodollar) spread also suggests limited global financial system contagion.

While the US, the UK and Japan also need to make fiscal adjustments to reduce deficits and stave off rising debts, they possess the three legs of a stool that provide economic adjustment: their own currencies, fiscal policy and monetary policy. The eurozone has a common currency, while its economies function differently and have country-specific fiscal policies.

The medium-term outlook for the US dollar is for continued strength versus the euro and yen, due to stronger US economic growth and the prospect for earlier rate hikes in the United States.