One of my most memorable moments with my wife was a date to an amusement park before we got married. We were standing in line to ride a roller coaster and as we made our way to the front of the line, the young man in charge stopped us and informed us we would have to wait for the next car. Standing there at the front of the line, I informed my wife that I really hated roller coasters. It’s just who I am. I like to be in control, and riding a roller coaster is more out of control than I like. Fast forward 20 years and today we are riding one heck of a roller coaster with the most erratic economy in many years. I can honestly say that I still don’t like them, but I am learning to deal with the ups and downs.
Last week I was talking to my financial adviser and I asked him how the economy was impacting his business. He surprised me by saying that 2008 was a better year than 2007, and the beginning of 2009 is better than the beginning of 2008. How is this possible? I would think that financial advisers would be having a real problem, but he has found a way to turn a whole bushel of lemons into some pretty sweet lemonade.
Which brings me to the point of this post. Is this the time to get out of the stock market just in case we haven’t seen the bottom? I tell everyone the same thing. First, I am not a professional financial adviser. Second, unless you are ready to retire, ride this thing out. Right now there are a lot of people that are really afraid. They are afraid of losing their job and they are afraid of losing their home. They have lost a lot of money and they are afraid that they will lose even more before things turn around.
If I could offer you an opportunity to sit down with Warren Buffet, would you heed his counsel? Well, I don’t know Mr. Buffet personally, but I can offer some of his advice.
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
Right now, Mr. Buffet is taking advantage of this roller coaster and is putting a lot of money into the stock market. Why? Because a lot of people are afraid and he knows that by buying low, he is going to make a ton of money when (not if) the market turns around.
Let me remind you that we don’t think you should be investing in the stock market until you are out of debt, and even then don’t use money that you can’t leave invested for at least 5 years.
Yakezie Posts
- What makes the best credit cards stand out from the pack? By Michelle
- Why are rates on credit cards so high? By Michelle
- What stores sell prepaid credit cards? By Michelle
- Who owns credit card companies? By Michelle
- Why are credit card companies closing accounts? By Michelle
{ 2 comments… read them below or add one }
Why should investors pull out of the stock market?
If Mutual Funds, Pension Funds have not lost confidence in stocks then why should we?
Ya i agree that now stock market is not that much safe, according to me if you are ready to invest for long run than mutual fund is the best option.
{ 1 trackback }