After the latest recession, the economy has been steadily building back to where it was. Many are starting to believe another crash is inevitable.
This causes doubt in the minds of consumers, which leads to people pulling their money out of the stock market (which will definitely cause the market to crash). Since jobs are still being lost and the housing market is still "up in the air" the market may drop in the near future, however, how much it drops depends on whether people begin to fear for their money and take it out of the market.
There are many alternatives that are far better than hiding your money in the bank. In a CNN-Money article, Walter Updegrave explains these alternative options. Basically, he believes in a mix of different bond options and a diverse range of stocks in order to make sure your money is protected if the market crashes. This is the safest way to still make money.
Updegrave's entire article can be found here.
Monday, November 30, 2009
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As FDR said, the only thing we have to fear is fear itself.
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