Stocks


Since the economic crisis, consumers have pulled more than $33 billion out of the stock market.

Obviously, losing all that dough has scared many folks straight. Plus, the demographic issue of lots of baby boomers nearing retirement would have a natural compounding effect on saving cash vs. equity.

There are some folks who still think a double dip recession is coming and the dow could fall to 5000 (including Mark Cuban who thinks stocks are for suckers). Maybe. But then again, maybe not.

I'm still a fan of stocks. I like companies that I understand what they make and sell and especially if I use their product. I like companies that pay a dividend. I like watching companies and when I see what I think is a good buying opportunity, go for it. And then plan on holding onto the stock for 20 years. So for instance, I see Bank of American trading at 12-13 right now. And I know it is a shitty time for banks, but let's get real, there's always going to be a need for the basic bank business. And BofA is now one of the biggest banks in the country. Unless I think it's going belly up, eventually it's going to recover. I figure. In the moment, it isn't much money up front and I figure it is a good bet to grow in the next 10-20 years.

All these people leaving market, to my mind, makes it a good time to buy.