Describing the advantages of investing in the stock market
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Well, the short answer is yes, I do believe that the stock market is still a good place to invest your money. You pointed out that stock investors have lost a lot of money the past two years, and that's certainly true. The market has tumbled down. But you have to take an historic perspective. Over the past 100 years, the stock market has averaged a 9-percent return. That's pretty good, much better than the 2 or 3 percent most bank accounts pay. So this is a down period for the market, but it will bounce back, and it's still a good avenue for the average investor. In fact, now is actually a great time to buy stocks, while the market is depressed. However, I do not recommend that clients put all their money in the stock market. I advise people to invest in many different things. For example, they should have bonds, real estate, and maybe gold or silver as part of their investment portfolio. That way, they have some assurance that when stocks fall, their other holdings will rise to balance their total investment package. There's a lot of truth in the old saying, "Don't put all you eggs in one basket." Bearing that in mind, each investor is different, though. The types of investments I advise for each person depends on many factors, including their age, their income, and the degree of risk they are willing to take. Stocks provide a good return, for instance, but they are riskier than say, bonds.
