Worries about the Dow. Are stocks the best investment? The market has been the best place historically. Over time the market has performed at an average of 8-10%.
How fresh our memories are of the late 1990s when it seemed the only way was up. How fresh our memory of 2000 when few moves were higher, back when tech stocks headed south.
The question is what about now. Is it where some of our $ should be invested. We enjoyed watching the Dow hit 14,000 but look where we are now.
The good news. It's up about 4% over the last 12 months. Few savings accounts averaged that. Our local bank passbook has averaged barely 0.5%. [Our mutual fund money market is currently at 4.8%.]
Yes, the market is where we'll stay invested about 50%. We are not seeing capital gains and very little dividends but the growth potential is good. I do not believe we are in a recession.
The market is influenced by many things. I think this past week the talk has been how retailers were going to suffer because this holiday spending season was projected to be very low.
So far this Black Weekend, reports are positive. I predict the market will smile on Monday and go up. The big shadow is that oil hit a high mark late last week.
We'll stay tuned and for now stay invested in stocks with our long term $.
'til later
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