Is it safe to invest in stocks ?

Discussion in 'Stock Market' started by maxcy, Apr 13, 2009.

  1. maxcy
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    maxcy Rookie

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    As we see another 23rd U.S Bank - New Frontier Bank in Greeley, Colorado, was closed by state regulators and bank to fail this year amid mounting losses linked to rising unemployment and the slumping housing market.

    Is it safe to invest in stocks while these recessions are still going on, If "Yes" what are the primary precautions should be taken these days before investing in any stocks which are related to Housing markets?
     
  2. neurosport
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    neurosport BANNED

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  3. eots
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    eots no fly list

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    I Was going to suggest guns ..gold.. dehydrated food and seeds...
     
  4. editec
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    editec Mr. Forgot-it-All

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    Define "safe".

    I look at the changes our economy is undergoing and I cannot see how it will get healthier in the long run.

    I see massive changes in the way American will be living in the future and in the medium run (say the next 20 years or so) I expect American will, on average, become less affluent that we have ALLL come to expect.

    I sincerely hope I am wrong.
     
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  5. Iriemon
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    Iriemon VIP Member

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    Stocks are never "safe" in that there is always a risk you can lose some principal. However, in the long term they have been the best vehicle for investment at least for the small investor. But you should have a long term view.

    With that, I'll take a different tack than the others.

    This is not the first time the doom and gloomers were proclaiming the end of America; their voices were heard loud and clear in the late 70s and early 80s. Shortly before the stock markets took off on the greatest bull run in memory, if not history.

    Will that happen again? Who knows for sure? But unless you believe we are headed for another great depression (and some do) then history shows at some point greed begins to outweigh fear and investors start jumping back into the market. And historically there have been some very strong years following a recession. By the time you figure out that is what is happening, you've missed it. In fact the market is already up more than 20% since its low.

    If you do invest, make sure you are well diversified, and if you don't understand the principles of investing, I'd recommend that you consult with someone who does.
     
  6. tigerbob
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    tigerbob Increasingly jaded.

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    No such thing as safe, particularly right now. Only invest what you could live with losing. Never borrow to invest.

    If you're new to it and want low risk, I'd stick with municipals if I were you. If you're thinking housing, it sounds like you have an appetite for risk. I personally wouldn't touch banks or housing at the moment. There have been positive signs but I still don't think all the bad stuff has shaken out yet.
     
  7. PoliticalChic
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    PoliticalChic Diamond Member

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    Some believe in the economy in the long run, some try to time the market, and some look at angles, Fibonacci numbers, and inflections of the DOW. Your choice.

    That being said, I read and interesting newsletter around inauguration, and followed up with a copy later in the year. The author predicted that the DOW would drop to 6600 by mid February. He was almost on the head.

    I called and got a sample newsletter, and this is what he predicted: DOW would regain 30-50% of its losses by summer- but then within a year would fall below the lows, possibley to 5000 as a "second leg" of this recession. He also claimed that every trillion the administration puts in would add a year to the recovery.

    If the DOW hits 8800 by summer, that would be two correct calls for this advisor.

    Any thoughts?
     
  8. Iriemon
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    Iriemon VIP Member

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    Do you have a cite to the article?
     
  9. stekim
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    stekim Just Plain Awesome

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    Whether it's "safe" or not depends on your time frame. Stocks are dirt cheap right now. So the upside is huge. But the short term volatility isn't going to disappear. So if you are in the long haul start buying!
     
  10. PoliticalChic
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    PoliticalChic Diamond Member

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    It wasn't an article, but I recall the prognosticator's name, I believe, was Steve Frankel or Frankle,

    I'll try to find the Phone #. If you come across it first, post it.
     

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