Do you think the stock market is still a good investment?

Question

I have been reading about the current bear market and how far the stock market has crashed recently. I also read that if someone would have put an equal amount of money in a CD (Certificate of Deposit) and a index fund matching the Dow Jones Industrials ten years ago, the safe bank CD deposit would have done better!

I put all my money in safe bank accounts a few months ago and sleep better but my friends tell me that my money should be in the stock market!

Answer 1

No.  And the bank isn't safe either.  Get Brazilian and Australian bonds.

Answer 2

don't listen to them, maybe by some after the election but right now it looks like it's going to completely crash

hint: buy when its really low then sell!!!

Answer 3

wait till they increase interest rates.  then your returns will be higher over the longer term in the stock market.

Answer 4

The answer depends on many factors - your age, your income, your plans, how much you have to invest.  There is no one simple rule.  This is one area where it really pays to educate yourself.  Investing is a lifelong endeavor.  so a few hours spent will pay off big time.

Answer 5

NO

your money should be in business.

I'm investing for years in successful existing business at 40% per year. I sleep better and don't care about stock prices.))

I wish you success!

Answer 6

that depends on your situation. If you are young and can wait for your money then buy stocks now when they are low if you need your money relatively soon then stick with the Cds

Answer 7

TMLG, since January, the stock market direction has been down, down, down.  That alone should answer your question.  

Wait till the market has been fairly stable for 3-4 months before thinking about getting in.  

To learn more, continue to read postings here; join some of the very good Yahoo groups involving investing and the stock market; and, for local groups, check meetup (dot) com.  That is what I do.

And, no, I am not currently in the market.  I see a continued downward movement for the next 9-12 months.  Good luck.  Jack

Answer 8

Now is the best time to invest because stock prices are low.  Buy low-sell high.  You can't get jittery because the economy will come back up again and investors who put $ is when prices were down are going to come out WAY ahead!

Answer 9

Have you read this-- http://homeruntrades.blogspot.com/2008/0...

I'm not sure why your friends came to that conclusion, but it may not be good for you to invest in the stock market any time soon. With all these funds shifting to fixed income securities, the yield you might get may not be that exciting even.

Answer 10

In my opinion the stock market is always the best investment for those who take the time to learn.  Think about it banks take your $ and make big returns off of the stock market then they give you a little interest to make you happy.

Answer 11

Like anything else in life when one goes to extremes they're wrong.  You sound alot like my wife who is in full out panic mode and wants to pull all of our $$$ out because the mkt is tanking.  I reminded her that by AVERAGING our way into our investments OVER TIME we are actually still ahead.  I also reminded her that our various funds have steadily paid us DIVIDENDS and CAPITAL gains as insurance against such catastrophic losses (ONLY INCURRED WHEN YOU SELL).  Finally, I can sleep at night knowing that I've some in MMF (Money Market Fund) and am still averaging my way into the DIVIDEND & CAPITAL GAIN generating funds I've had for many, many years.  In fact I think I may/might increase my monthly investments just now because OVER TIME I know that the investment will only benefit.  Finally...having all your eggs in one basket will only get you a few eggs...taking a risk or two and diversifying won't hurt.  Try averaging some $$$ into First Eagle Global while it's open...or T Rowe Price New Era Fund...you'll sleep just fine regardless of the market joculations knowing that if you TAKE YOUR TIME and invest consistently you'll be ahead in the end...Set a realistic time horizion say 15-20 years...Also keep an eye on what you put the $$$ in because when the bull mkt in commodities ends you wouldn't want to be in New Era...GOOD LUCK!