Market volatility is down, Treasury yields are up and the U.S. government is quieting down. Investors should be sloughing off their market fears and taking more risk, brokerage experts say.

Who s talking: Jeffrey Saut, chief investment strategist, Raymond James

The Gist: The most investors want right now is to make back the money they lost in 2008, break even, and get out of the market. Yes, the roller-coaster ride over the last two years has been exhausting, says Saut, but this is the wrong time to shy away from equities.

Why? Because we re exiting the recession. If you bought the list of stocks Saut recommended in his March 16 strategy report Ruth s Hospitality Group (RUTH), Morton s (MRT), Carrols (TAST) and O Charley s (CHUX) ) and held them until last week, you would have made nearly 150%.

Companies are gearing up to spend money, make hires and build up their inventories, says Saut. More than 100 of the Fortune 500 companies are announcing hiring plans, and corporate layoffs have declined by 55% since their high in January. Corporate profits, he adds, have doubled since the last recession, but the S&P 500 is still where it was during the 2001 recession. He admits that the labor market is still a mess but says we shouldn t ignore the green shoots that signal economic recovery. President Obama s promise of creating 600,000 jobs in the next 100 days should also give the markets a boost. And the bulk of the stimulus funding will hit in 2010, lessening the possibility that the economy will soften again late next year.

Saut also says not to worry about the possibility of Treasury yields dipping. The Fed is more concerned about deflation right now than inflation and for that reason will try to keep interest rates low until at least 2010. He thinks the recent rise in interest rates and the recent dollar decline are both head fakes distracting investors from the fact that economic fundamentals are improving.

Emerging markets are already into new bull markets, says Saut, and the U.S. economy may soon be too. Buy equities, he says, and don t short stocks.

Who s Talking: Liz Ann Sonders, chief investment strategist, Charles Schwab, and Brad Sorensen, director of market and sector analysis, Schwab Center for Financial Research

The Gist: Granted, it s no time to throw caution to the wind with your investing, say Sonders and Sorensen. The U.S. government deficit is soaring, and it just threw another $30 billion into General Motors, which could put a damper on long-term growth.

But that s no reason to only stick with the safest investments offering miniscule yields, these experts say. Big banks have raised roughly $85 billion over the past month, and government support for financial firms seems to be over. Plus, global growth is improving as China and emerging markets continue to pour stimulus into their economies. Investors are also too concerned about the decline in the value of the dollar, says Sonders. The dollar is still the world s monetary standard for the foreseeable future as other currency markets currently lack the liquidity of the dollar.

Sonders and Sorensen recommend inching into international markets while keeping your portfolio as diversified as possible. Emerging markets look especially attractive because of their healthier financial institutions, cheaper currencies and faster economic growth. Avoid the European market, though, as their banks are still highly leveraged and their governments are more resistant to dishing out fiscal stimulus.

The sectors they say will outperform over the next few months are technology, materials and industrials, while defensive sectors like consumer staples, telecommunications and utilities have already had their run.