Thursday, August 11, 2011

What To Do With Money?

An interesting article on why the stock market is no longer worth investing in.

Despite yesterday's upswing, it has been reported that about $1 trillion in on-paper losses have occurred on Wall Street in the past month. That's a hunk of cash, and it wipes out many of the gains investors had recouped since the tech bubble burst in 2001 and the mortgage crisis took the market down in 2009.

For a decade now, I have contended that long-term investing just doesn't work anymore, that big-time day traders are buying and selling the same stocks two or three times a day and manipulating the market.


Okay...say stocks are being manipulated. What is one to do with cash? You can't save. The interest rate is zero. You can't buy property because the prices are inflated (due to low interest rates). You could invest in businesses...which is inherently boom or bust, all or nothing. You can invest in education...which is bloated. There is literally nothing one can do with money, responsibly. A smart person would invest in stocks and real estate because inflation is going to come eventually as a result of all this easy money and just sitting on it will eventually drown out the value. Stock and real estate will go up with inflation.

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