People on TV are saying jump on into the choppy waters of the stock exchange and buy. They tell you that old story – the market goes down but it also goes up;
The problem with this is that it has been going up and down recently nervously reacting the the latest news.
We are in uncharted territory. We haven’t tested the bottom yet. So much that has to improve before the market works itself back to more stable territory and many major issues such as joblessness will not be worked out anytime soon.
Senior citizens especially should take precautions to protect principal. Park any cash you have in a savings account – even at .02% interest. Remember until the market levels out, you especially need to protect principal because you may not have time to make it back.
DarcsFalcon
August 12, 2011
Only funds that you can live without should be played on the market, and these days, not many have that kind of disposable cash lying around.
Citizen Tom
August 14, 2011
I wish could simply agree or disagree, but we are not exactly in uncharted territory. What we have is a government that does not work well. That is not new. Are we the first people to have bad leadership?
So what about investments? I don’t have any great ideas. With a badly run government, fiat money can quickly become worthless. So hanging onto such money solves little. If the economy continues to crumple, capital investment will fall in value. When nobody can afford to buy, land and factories have little value.
So what is left? If they sell staples, food companies may retain some value. And that is a curious thing. The United States still produces lots of food. We just won’t have any jobs. How many people does it take to farm? Not many. So our farmers will produce food, be the rest of us won’t be able to buy it.
However, there is a bright. If our farmers sell all that food to the Chinese, we will be able to pay off our debt.
samhenry
August 17, 2011
Think money under mattress Citizen Tom LOL. So nice of you to come with such good comments. I appreciate it.