A lot of people have been asking should I buy stocks now since a lot of them are very cheap. You have to understand that stocks are at these levels for a reason. After the Great Depression, there was only one company out of the top 30 companies that is still here today. That company is General Electric (Public, NYSE:GE). So what does that mean? The top companies who are very weak now may not make it as public companies during these troubling times. Bank of America, Citigroup, General Motors, General Electric, Home Depot, are some of top companies, yet their stocks are at record lows. If the top money managers in the world are not investing in these stocks at these levels, then you should not be either.
The mantra of buy and hold is over. We can no longer blindly put our money in 401ks, mutual funds, and pension plans without doing the proper research. Last year, most people lost an average of 30% in their retirement plans. An account with $100,000 dollars went down $30,000 DOLLARS!! It took 20 to 50 years of hard work to fund your retirement account; you cannot let it be erased in 1 year. Now, we must “buy and do your homework”. Jim Cramer does a great job of teaching you the fundamentals of stocks and how to research investments for your portfolio. His book: Jim Cramer’s Real Money: sane investing in an insane world is listed here on our front page. Click on it and purchase it from Amazon. A 10 dollar book can save you thousands of dollars!