Investing in stock markets has always been a risky business

Why are we supporting people who don't support us

Stock markets have been known to crash over many periods since Wall Street was founded. The beginning of Black Monday in 1929 all the way up to the crisis of 9/11. Stock market crashes are social phenomena where external economic events combined with behavior and psychology, drives more market participants to sell. Generally speaking, crashes usually occur under the following conditions: a prolonged period of rising stock prices and economic optimism and a market where P/E ratios exceed long-term averages.

In every presidential election the stock markets have been known to decline when democrat candidates have been elected.

However with every cent that you place in the stock market, you are playing with fire. You are entrusting your money to someone else who has billions of dollars already hoping they will make you rich. When they make bad business decisions and are forced to pack their bags and leave, all the money you have invested is pretty much gone.

You would be better off putting your money in a money market account then investing in the stock market. The risk far out way the profits. No one in this day and time is going to get rich quick off of stock market investments. In the long run you will not get back nearly what you are investing.

Some people think that they are wise and invest wisely in good companies only to find out 20 years later that company wasn't so good after all.

If your total 401k is invested in stocks, you would be better off placing them in a money market account or an IRA, then relying on the stock market to make you money for your retirement. Let's face it companies that are already rich are offering stocks to the public to get richer as a portion of your money goes to that company.

Stop giving them your money and put it in a savings plan. In the long run you would be better off saving your money then investing it.

I did an experiment over a six month period and bought stocks through ING. I invested in SP500 and Nike. I bought 10 shares of each stock. These are companies doing really well so it seemed. At the end of the six months I had made no money from either stock and actually lost more then I ever expected. These were reliable companies. When I sold my stocks they were only worth about 3/4 of what I had bought them for. In the long run they got my money and I got nothing. I now have a money market account that earns interest and is making me money for my retirement.

More by this Author


Comments

No comments yet.

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.


    Click to Rate This Article
    working