A Lack of Trust

Frankly, I don’t trust in the fact that some stock broker out there can get me any better of a return that I can do myself.  This has never proven to be the case in the past. There are people who have been working for twenty, thirty, forty plus years, and who have seen almost half of their life-savings dwindle away within a matter of mere months.  I would never, and I mean NEVER allow that to happen while I am vigilantly watching my own portfolio.

We Are a Resilient People

Mostly however, I will continue to buy stock for that reason.  This is a great country; not the only great country in the world, but it is definitely a great one.  I understand the ebb and flow of the markets. Just before things came tumbling down we were experiencing a large real estate bubble.  Those things can’t go on forever, and in fact many people and hedge funds predicted that and capitalized on it greatly. An economy cannot continue to strengthen forever; you would begin to see serious inflation. There are times of recession, times of depression and times of economic boom.  Luckily, when you are trading your own portfolio of stocks, you can take advantage of it all.

Buy Low, Sell High

I almost hate to write the above-written title, because it almost sounds as if I’m saying “what goes up must come down”.  I am NOT saying that, and happen to know that markets trend.  Stocks tend to go up and tend to go down longer than you think they will.  Trying to buy a stock that is tanking downwards is like jumping in front of a steaming locomotive.  A very bad idea. Nevertheless, many stocks are at all time lows, and over the next months and years, as things in the economy begin to improve stock prices will surely have a good chance and rising once again.