The market seems to have gained some ground back from its recent sell-off, but investors are still skittish about jumping back into the game. I’ve been receiving numerous investment questions from people wondering if now is the time to get back into the market, if certain sectors are safe and what I would recommend they do right now.

Well today, I’m going to answer those investor questions.

Investor Question #1: Have we hit a market bottom, or is there more downside potential from here?

I always get this question after the market drops, and it’s always a tough one to answer. I’m not a market timer, and I don’t recommend trying to be one. If you own a basket of fundamentally superior stocks, you’re going to capture the maximum gains when the market turns around. If you try to time the rebound, you may very well miss the first round of profits.

With that in mind, I do think that the market is bouncing along a bottom. We’re just a few weeks from earnings season and the S&P 500’s earnings are now at a record high. I expect strong corporate profits to help boost investor confidence, and for individual investors and institutional money to come back into the market.

This is not to say that this is the end of the summer volatility. I do think that we’ll continue to get some bumps and bruises on our way into the fall, but if you own fundamentally strong companies and buy on dips this summer, you will be very happy when the third and fourth quarters roll around. (And don’t forget to use Portfolio Grader anytime you need to check the fundamental strength of your stocks.)

Investor Question #2: If you had $50,000 to invest this summer, where would you put it?

I’m an aggressive investor. I like having a margin of safety with my stocks, but for the most part, I like swinging for the fences. So if I were going to start a brand-new portfolio, I would have a couple of big blue-chip stocks, but I would be holding mostly small-cap stocks and high-growth American Depositary Receipts (ADRs).

The small caps are able to post surprising earnings results because they are more nimble and can better adapt to short-term economic declines like the one we’re seeing now. Smaller stocks with growing sales and earnings figures would be at the top of my list this summer.

ADRs are foreign companies that trade their stocks on U.S. exchanges. Usually, a large U.S. bank will buy shares on foreign exchanges and sell them to U.S. investors through ADRs. ADRs trade just like domestic stocks and offer a level of protection to investors who want international exposure without investing on foreign exchanges. And the growth opportunities in international markets are simply spectacular. Latin America has a growing middle class that is helping that economy explode. Israel has become a tech leader and has some great stock offerings, and even Europe with its debt troubles has some very attractive stocks for sale.

I’m confident buying in just about any market because I know that owning companies with a solid foundation will find buyers and will profit no matter what. In markets like this one, you may have to be a bit more patient, but your profits will come when the market panic settles and reason moves back into favor.

Investor Question #3: Can you give us one sector to focus on and one to avoid?

This is a tricky one. I have screens that detect when sectors are heating up and when they are cooling down, and I recommend sector ETFs to my Blue Chip Growth members so they can profit from this sector rotation. But we don’t hold these sector ETFs for very long because the real money is always made in individual stocks — regardless of where the sector is headed. Let me give you an example:

All sectors have their big boys that will run into supply or demand issues and will announce warnings about their business when things slow down. This will usually impact the smaller companies as analysts downgrade the whole sector — the classic throwing the baby out with the bathwater. This doesn’t necessarily mean that the whole sector is in trouble or that you should avoid it.

The reverse is also true, just because tech stocks are having a good run doesn’t mean that all stocks are created equal and that you can buy just any tech stock and be successful.

I evaluate stocks individually and find the best opportunities in any sector. With that in mind, I will say that, in general, I’m finding strength in the health-care sector as cautious investors look for safety, and I’m seeing continued weakness in financials.

If you’re interested in increasing your exposure to a particular sector but aren’t sure where to go first, follow my Best by Sector feature in Portfolio Grader. You’ll get a full stock report on the three top stocks in the sector.