I believe that this is an actually an extremely good time to invest in the US stock market through an index fund.
stockstradr writes:
I agree completely with that sentiment. You’ve got an original poster who, after the markets have fallen 20% (since Oct ’07) wants a “safe” place to park their money to ride out the storm.
What?
(I’ll assume for the moment that the original poster is not approaching retirement, so can handle some risk beyond simply buying CD’s.)
Now stocks are on a 20% off sale. I think the vkailas’ suggestion is a good one that this is EXACTLY the market situation where dollar cost averaging (continuing to buying stocks) can really pay off.
However, don’t conclude my comments above imply I agree with everything else that vkailas wrote in the post, or the others. I totally disagree with his views on the long-term strength of the US economy. Also, as for me personally throwing the darts and guessing the turn of the market, I think US stocks are at least 10% away from the bottom.
As for CD’s at those rates mentioned in this thread? I personally would NEVER buy such an investment product that is obviously paying much lower rates, relative to current inflation. That’s a strategy for watching the vale of your money DECLINE, in real terms.
