Americans don't trust their government or business right now. And if you
invest in stocks, and cash out during market downturns, you would of been better
off with cash. Pension fund managers love it when the individual
invests. They pull their money out when stocks are high, causing a downturn,
then reinvest when the stock nears it's bottom. The small investor loses
40% of their lifetime savings, and pulls out of the market. They can't
afford the long term rollercoaster. The odds are with the house.
Many who have cash in long term savings don't have short term savings to
Yes, but at least my financial adviser doesn't have to go through the agony
of explaining to me why I lost 50% of my portfolio value 10 years from now.
Why?... because nothing has been fixed and what we saw happen in the last few
years will be repeated.
If you need the money this year, use a savings account.If you need
the money in three years, invest in bonds.If you need the money in
five years, invest in companies that pay dividends.If you need the
money in eight years, invest in indexed companies.If you need the
money in 12 years, invest in small companies.If you need the money
in 15 years, invest in growth companies.If you need the money in 20
years, invest in real estate.If you don't need the money, go to
Investing in cash may be a "big mistake" as this article says, but at
the end of the day you can't buy food with stock certificates.
I would never invest in cash. If you are loosing money in stocks it is your own
fault. I own stocks, bonds, real estate, gold funds. The internet has changed
everything. I check my investments daily. Sir Robin. I haven' seen a
stock certificate in years. Stop listening to all the naysayers and tune in
Bruce Lafave, Ramsay or other investment gurus.