The stock market opens for the year.

I'm David Brancaccio and the first minutes of trading of this new year, both bonds and stocks are in a bit of a sulk.

This has moved the 10-year interest rate higher to 3.93 percent, and the NASDAQ

stock index is down sharply, 243 points, 1.6 percent. The S&P 500 is down 7 tenths of a percent.

Checking the Dow, it's down 52 points, about a tenth of a percent.

Whatever your mood going into this new year, it is important not to let that mood get the

best of you when making financial decisions.

Economist David Kelly is chief global strategist at J.P. Morgan Funds.

Be careful about investing based on emotions because people felt terrible all year but actually the

economy did very well the unemployment stayed below four inflation came down and

almost every asset class actually be cash.

I mean people said cash is king but it must be a very modest monarch because it allowed

itself to be outshund by almost every other asset class last year.

All right, but what's a better course than leaving everything liquid ready to go if the

economy suddenly becomes completely clear?

The new set of risks, new challenges.

I think the other thing to think about this year is think about

valuation. We had a really good rally at the end of the last year and that

really helped investors but just be broadly diversified and just don't be too emotional, don't get into

too much negativity because, frankly, last year the U.S. economy did really well and there's no

particular reason why it shouldn't continue to do well in the year ahead.

David Kelly at J.P. Morgan Funds, thank you very much.

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