The reason you shouldn't be afraid to invest in the economy right now...
By deemazing
@deemazing (395)
United States
July 9, 2008 1:48pm CST
The economy right now is bad, and it probably won't be better for a few more years. That very thought makes people think twice before investing their money into the stock markets and other investment opportunities. But here is what you need to understand about investing...
Any time you invest, you should not be using your own money. What I mean by that, is that investment money should not be money that you are depending on. Just like you don't want to depend on having overtime every week, you need to think the same way with investment money. Investments are a gamble, and you need to make sure you can afford to lose, because you will lose sometimes. For that reason, you need to have set aside "play money", as I like to call it.
Now, since you are using play money, now is the best time to invest. I know that sounds crazy, because there is nothing good coming out of it, but the thing is you have to lose to win. You will lose now, but everything you buy in the stock world has a lower price BECAUSE of the economy. If you can wait out the game for a few years, you are likely to profit generously. Now, that doesn't mean spend frivolously, you still need to choose a good, stable company before investing in their stock option.
If you have different feelings about this or would like to eleborate on this discussion, please do.
1 person likes this
2 responses
@penny64 (1106)
• Australia
13 Jul 08
I agree that you should not invest with money you are going to need in the very near future. However I don't think it is necessarily a gamble. Investing is not usually done to earn a "quick buck". It is a more longterm commitment, and if you invest in good companies and are in a position to choose when you withdraw your money, you are more than likely to profit. The stock market rises and falls and rises. People who buy into risky companies and/or panic sell when prices are down because they need that money now are those who lose.
1 person likes this
@lrglara (1334)
• Philippines
9 Jul 08
I don't think buying stocks or investing has to be a gamble... every investment decisions you make has to be clearly analyzed. sure, you can lose in investing especially since the risk is not guaranteed. but think of it this way, once you buy a stock, you are a part owner of the company which gives you part of the profit they make in form of a dividend.
obviously, your stock may not be much to let you have a say in the operation of the business. but you can help out, especially during stockholders meeting, surveys, etc.
in this turbulent times, stocks have plummeted. their prices are low but you have to rely on your instincts and the company's performance for the past years, and their performance during turbulent times... i mean, do they still make profit even during recessions... something like that...
if you want to invest but don't know how... you can also buy shares of mutual fund.. they pool money to invest in large corporations and government and earns rather stable interest for keeping their / your money there.
Good luck!
