Is the Stock Market Safe?

Are you investing in the stock market in these tumultuous times? If not why not? If you are, what makes you think it is safe to do so?

People Everywhere Are Skittish

The other day I was listening to a very popular television personality discuss the stock market with his guests. He stated bluntly that he would not invest in the stock market these days because the economy was just too unstable.

Wall Street Sign

I have not seen the numbers, but I have heard a number of technical folks refer to the low participation rate in the stock market. Many big investors are actively buying but a lot of ordinary folks are not.

There are many issues to consider in determining whether or not to invest. No matter where you are in this equation, it is important that you understand the risks and are watchful at all times. It is also notable that there are risks in not investing in the stock market as well as there are risks in investing.


How the Financial Crisis Changed America

Today I read an article from the folks at Fidelity Investments. They completed a study in February called The Fidelity Five Years Later study—referencing five years after the financial crisis began. The participants represented adults over twenty-five years of age, financial decision makers who have investments so they were above average in their financial commitments, as I am sure are those reading this blog.

The Crisis and Financial Attitudes

Here are some of the results I think you will find interesting:

  • 42% have increased participation in workplace retirement and health savings plans
  • 55% feel better prepared for retirement
  • 42% have increased emergency fund savings
  • 80% have a better understanding of their finances
  • 49% have purposely decreased personal debt
  • 72% have less debt now than before
  • 78% say they have made permanent behavior changes

What Do These Results Mean?

As you look through this list I think you will see many reasons to be hopeful for the future, at least among the people surveyed.


Your Outlook on the Economy
Determines Your Success!

One of the most important truths you can ever learn in life is that your thinking determines everything. The way you think shapes your life.

In no area is this more significant than in your financial life. You will never be successful with money until you see yourself and your opportunities as filled with potential rather than failure.

Mike's Money Success Attitude Story

Recently I read a great post by Mike McGroarty dealing with the economy. It isn't his particular field of interest—he promotes growing plants for sale as he has done himself—but he makes some great points in this…


Is the Rising Stock Market a Sign of Economic Recovery?

Almost every day now we hear optimistic reports about the stock market suggesting that the economy must be improving because the price of stocks continues to grow (albeit not agressively).

Surely this must be a good sign, right? And if we were to pour cold water on that notion we must surely be the bad guys. But what is the truth?

Rising Stock Market—A Good Thing

Before pointing out the obvious (at least in my mind) reason for concluding that it…