Lux Investing

The way the econemy is today is it safe to invest into money marketing accounts or stocks and bonds?

Which is less risky and more benefiting?

Public Comments

1. It's the best time. You can snatch up lots of stocks cheap. Safest=money market. Not much return though.
2. Money market accounts are lowest risk. Stocks/bonds are higher risk but higher potential return.
3. Is the economy really that bad or have you bought into the Liberal media's scare tactics. You could invest in a Money Market, and possibly sleep very well knowing that you're money is almost growing at a rate that may stay up with inflation OR You could by Government bonds at a fairly decent rate, but if the market moves up, you'll miss the boat. OR You could invest in the market where there are many bargin stocks of good companies. The American market always has many opportunities for great investments. You have to decide what you feel is best for you, no one can tell you that. If you are uncomfortable - don't invest in it. The market has many opportunities for those that believe in America and the American people and not the Liberal press.
4. Huge topic. In essence you are asking if stocks or bonds are going to go up or down. Nobody knows for certain. That is why we have markets. And that is why they go up and down. Basically for each trade, one person is buying and the other is selling. They have opposite opinions on the same asset. One thinks it is going up the other thinks down. You get paid for taking risk. Risk has to be "managed". Things like diversification reduces risk. And the higher reward of risk "buys down your risk". A hard concept. For example, roughly: If money in savings in the bank is making 1%, and a corporate bond fund pays 7%, after two years you make 2% in the bank and 14% in the fund. But then the bond fund falls 10% on an interest rate jump. Yikes! You still made 4% on the bonds (14-10=4) which is twice what the bank paid. But the 10% falls scares many people so much they would rather have their money in the bank. Much depends on how you feel about it. And it takes somebody that is willing to learn, be knowledgeable, and who tracks their returns over time so they don't just look at that 10% drop and sell low, being scared off. But most will do just that. I would never try to tell people exactly what to invest in and when. I do tell them what I did. I am more than willing to help them with how to invest. For instance, for stocks, you said "today". I would say don't put it in all at once. Split it up, maybe over a year. Then you don't care very much about the price "today" because next month you can buy more cheaper if it goes down. And if it goes up you made money. Just my humble opinion. Side note: The "Liberal media" is NOT responsible for the stock market being down for a year, didn't put 1 in 50 homes in the foreclosure process CURRENTLY, cause the credit crunch, outsource our jobs, raise the oil prices, or drive the banks close to failure barring a bailout by the Fed. Sheesh. You can thank the conservatives, The Republicans for that and a 6 year WAR they claimed would last 6 WEEKS. They had FULL control of Congress AND the Presidency. Thank them.
5. In google news today: Lower home prices and 4-year high jobless numbers. This means feds might not raise, or even lower interest rates. Steady or lower interest rates brings in bulls to the market; It could also be a good time to Short the USD.