Does anyone else see the TREMENDOUS buying opportunity at hand?
Ah, I see... This abysmal crisis is going to make everyone rich again as you can now buy stock for next to nothing ! All the "money" that has "evaporated" is going to rain down again after the crisis ends ! Which it surely will ! It must, as it can get hardly any worse than this !
I say wake up. It is never again going to be like it was. I believe the world would be a better place if the entire stock trade were to be abolished, so that people could either do something useful or trade in things that actually exist. I'd rather buy a plot of land, a painting, anything at all, than risk my money in the ludicrous circus that is called "financial market".
Just the view of someone who does not grasp the basics of economics
You're missing the point, there is no getting rich quick! Anyone who expects such a miracle will be sorely disappointed. I don't desire wealth, I desire financial security when I'm old. Getting rich may be possible, but this doesn't happen to everyone.
Chris, you're what's called "risk averse"; for people who are turned off by risk, there are great, non-stock ways of investing. (In the US, there's the govt bond market, which is a good venue to grow your money slowly but steadily, with much less risk (less potential reward) than the stock market. (I'm not sure how that works in other countries, however, if someone could fill me in?) The cool thing about the stock market is that even as it goes up and down, in the long run
, it ALWAYS goes up.
I disagree on your comment about stocks not existing, they are tangible assets, last time I checked that was not illusory.
"Never" is a very long time!
I certainly wouldn't recommend someone in your life-position to invest in the stock market, but for someone like me, (I'm single, no kids, no house note, still in my 20's not looking at retirement for 37 years) the miracle of compound interest can do its work OVER TIME, that's key...if one has 20 years to let the money sit, it WILL grow; those who will be needing their money sooner than that shouldn't be heavily in the stock market to begin with! I'm going to need that capital appreciation at retirement; social security (a US govt tax-subsidized national pension plan) will be bankrupt way before then. I'll gladly be clown to the market circus any day.
The very first dollar I invested in 1992 is now worth 10! Had I put that dollar in gold or land, it would be worth only 2-4 dollars; this difference adds up hugely over time. Also I couldn't have afforded to invest in real estate in monthly installments as I've done in stocks. That's the beauty of dollar-cost-averaging (investing in steady increments, not huge lump sums.)
Terez, check this out. Some mutual fund companies (T. Rowe Price) have automatic investment plans with minimums as low as $50 per month! A tiny bit of money invested today (especially for someone your age) can ultimately show 50 times growth in 40 years! That 50 bucks you put in may very well be worth thousands in time.
Another great mutual fund is Vanguard.com fund #0056, the STAR fund. It is a great starting point with a minimum investment of only $1000; after that, no more investment capital is required (but recommended!) I'm tellin' ya girl - find the money to do it, you won't be sorry. The STAR fund is what's called a balanced fund, it holds stock AND bond mutual funds within; as the markets change, the asset allocation within the fund is adjusted to preserve capital.
Take a look at vanguard.com there's mutual funds for everyone from little Susie to Grandma Betty!