VenusRising

Why Don’t We Buy Stocks When They Are on Sale?

I agree that the author makes a valid point. Historically, the stock market ebbs and flows - but continues to rise. At this point the market is unusually low, however it must regain and grow. If you were to purchase stock now you are purchasing at a sale price. Buy low - sell high. Long term investors could potentially see returns as soon as 1 year, and most definately in 5 years. This case scenerio because more effective in an index fund where seveal individual stocks are pooled to create a mutual fund. Subsequently, picking an index fund that is sustainable for the future may be a wise choice considering the push for "green" goods such as solar and wind energy which is sure to pick up speed in the coming years as oil supplies dwindle.

The obvious conclusion is to have a well diversified portfolio of several options; mutual funds, bonds, gold, euros, individual stocks, life insurance policies with fixed cash values, etc.