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.

There Are Risks on Every Side

The risks of investing in the stock market are obvious. Pressures on business are growing from every side due to taxes, the health care program, out of control regulations, and more.

When combined with the public issues of the social security program, Medicare, and government debt no one can question the potential for economic collapse or at least recession. So far businesses have been able to adjust to changing demands but for how long?

Now what about other options? If your investments are not productive that is a risk as well. There is no question that investing in the likes of CD’s is a waste. Real Estate in troubling times can be a disaster. If you turn away from the stock market, where else can you find a solid investment?

Where Will You Invest Your Money?

A little over a year ago I discussed my approach in the focus article of my Success With Money Action Newsletter. This week I decided it was time to review my thinking and share it in the new Articles section of the website.

Menu: stock investing article

You can read Is It Safe to Invest in Stocks by following this link or by finding it under the Articles tab in the top menu.

Please do not assume that I am recommending what any readers should do. My opinions are only that. In every case I recommend that people need to do what they understand and think right for themselves. In no case would that be more important than in this one.

What I do share is a viewpoint that I use to guide my decision making in this area. It could be helpful to you, and I think it will.

What is Right for You?

There is an old saying, “When all is said and done, there is usually more said than done.” As applied to this situation, this suggests something of a warning. Be careful whatever you do.

Investing is one of the more important keys to success with money. Certainly each of us needs to think carefully about how we can do it successfully under the present situation. But do it we must.

P.S. Don’t forget to read my article here.

Comments

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