Why Now is Not the Time to Stop Investing in the Stock Market

24 Feb

If you are anything like millions of Americans out there, you are probably staying as far away from the stock market as you can. However, you will likely agree that the stock market reacts on fear. It also reacts on speculation. If you can handle the wild ride and avoid the fear and speculation, you beat out a lot of competition and stand to make yourself a few bucks in the stock market. My inspiration for this post came as I was watching CNN this morning. One of the top headlines read, “Yesterday’s Biggest Losers, Some of Today’s Biggest Gainers” in reference to the stock market. And it’s not the first time I’ve heard this story.

Many friends of mine have curbed spending and investments because they are reacting on fear from the media. In my last post, I wrote about how we must look beyond the negative in to media to see the positive in our current economic situation. I understand people have lost their jobs, as I am in the same boat myself, but if the unemployment rate is 10.5% that means 89.5% of people are still employed. Many of these people are making the same or greater salary as they were last year. While it is always a good idea to curb “frivolous spending” there is no reason to stop investing especially when stocks that would otherwise be robust have crashed due to fear.

Take a look at the stocks that have had a beating during the last few years and evaluate their valuation. Not to mention, there are “bargain stocks” out there right now. If you have a retirement plan, or IRA, do NOT stop your contributions. Now is the best time to cash in on low stock prices before they start regaining value but do so with great research and investment on your part.

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