The following commentary comes from an independent investor or perhaps marketplace observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
We may think it's a stupid idea to purchase stocks now. As well as I'll admit, things are a bit bleak. Seasonal hiring is disappointing as well as unemployment remains stubbornly high. Inflation is eroding family budgets whilst wages as well as personal income are stagnant. Debt woes in Europe are in focus, but the "super committee" ensures that debt issues in America is the topic of ridicule sometime soon.
It's indeed ugly on Wall Street. September saw us shed about 4% from the major indices -- as well as if we hadn't seen some big up days last week, we can have languished at lows that have been off regarding 6% on the month. As well as that knows exactly what October will bring after a flop earlier this week and a rally off of the lows in the last two days.
But the risk we should be focusing on now isn't the risk of having stocks. No, the real risk could be what will happen if we are not invested in the marketplace.
Here are three reasons precisely why we should stop fretting and start investing now, with investment opportunities to prove the point to consider:
The myth of going to money is the fact that you'll protect the revenue. Possibly it's true that you will not see a red arrow next to your own bank account unless you make a withdrawal, but the sad reality is that if the cash is just sitting there, it is losing value every day. The U.S. Labor Department reported recently that consumer costs had been rising at a 3.8% annual rate -- the hottest pace of inflation since November 2008. In short, the money can buy regarding 4% less now that it did a year ago.
Still think it's wise to allow your own cash simply sit there?
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