Should You Avoid the Stock Market?

by IRA Rollover in Gold Investing, Gold Stocks Vs Physical Gold with Comments Off on Should You Avoid the Stock Market?

In the past few years the stock market has scared a lot of people away.  We watch as it climbs higher and prices rise then it dips alarmingly, particularly when news from WashingtonDC signals economic changes.  The announcement that a country is in default can make an investor lose millions, even if the news is not true.  The market is so fickle that you might wonder why you should invest your hard earned money in something that seems so unstable.

Is it really that Bad?

What you don’t see is that while the Dow might plummet several hundred points, most investors are not losing money and may even be making money on the plunge.  If you look at the earnings of companies listed on the stock market and the dividends they are paying you would get a much clearer view of the true state of the market.  The overall picture is not as bleak as the public thinks when it sees those numbers at the end of each day.

The stock market can be good and it can also be very, very bad.  A lot of investors took their money (what was left of it) elsewhere when they took big losses in 2008.  The crisis caused primarily by the collapse of the housing market made ripples in every sector of the economy but especially the stock market.  Many looked for other ways to make their money grow even when the market began to stabilize.

Diversify!

The key to preserving your principal and growing your wealth is to diversify.  You can save your money but the average person will never have enough to live on throughout their retirement if they don’t find ways to make those savings grow.  It is important to start saving early and make good investments in a variety of financial products.  The more places you put your money, the better chance it has to grow into a fund large enough to support you in the lifestyle you’d like to have after your career comes to a close.

You should have some good stocks, some bonds, some mutual funds, and even some real estate in your investment portfolio.  One of the safest ways to escape inflation and currency collapse is to have part of your money in precious metals, particularly gold.  Gold never loses its value no matter what is happening with the economy or around the world.  The dollar, euro, and other currencies go up and down in value but gold will always have the same buying power that it always did.

Should you avoid the Stock Market?

The stock market is a great way to grow your wealth if you know how to make good decisions or have an advisor that is knowledgeable.  People who invested in IBM, Apple, and Microsoft aren’t sorry they decided to take chances on small, innovative companies and they certainly don’t regret the millions they made.  You may never make such a fortuitous investment but you can invest in companies with steady growth that will build your nest egg.

So own some stocks and don’t be afraid of the market!  But make sure you have other financial products such as mutual funds, bonds, or even certain types of annuities.  You should also invest in gold and other precious metals, too, because they will never lose value.  A variety of investments, including gold, will insure that your money grows enough to support you nicely when you retire.

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