Prime Rate Credit

Let’s talk about the current stock market for a minute. First of all, you should know that I’m not a huge skeptic when it comes to the resilience of the American economy and the American stock market as well. I know, times have been extremely tough over the past year, actually about two years now, for our economy with a multitude of factors affecting consumers as well as stocks, because whatever affects the consumer basically affects the stock market as well as you may already know.

Many people who are not so convinced of our economy’s resilience are bailing out big time on US stocks, and delving their money into money market accounts which are a much safer option, but are an incredibly (odds have it) lower rate of return over the long haul on your money. Remember, you should almost always invest in stocks with the long term - at least 3-5 years in mind, if not more, or you could be in for a lot of losses as well as getting taxed out the wazoo for short term gains.

It makes me kind of sad that the paranoia about the state of the US is forcing people to panic and put their money in places that really don’t even keep pace with inflation - which by the way, in broaching a 5% mark this year, especially for food and other goods, rather than putting their money in places that have a much higher rate of return over the long haul. Think about it, the wealthiest people are the ones who still buy when everyone else is running away, just look at Warren Buffett as a prime example of this philosophy.

He has a well known theory that you should be greedy (buy stocks you think are good) when everyone else is scared, and be scared when everyone else is greedy. Hence he is one of the world’s richest men, actually I believe he tops that list now. As long as you are a person who can research good stocks and buy it at a good price (aka, when most others are scared to invest in the stock market), you could definitely make out like a bandit around retirement time!