Should I Invest in the Stock Market?

Investing in the stock market is a dilemma. There is no refuting that historically it is the best performing asset class far outpacing bonds, commodities, real estate, and gold. To achieve these returns investors must be able to survive periodic bear markets and crashes however. The financial crisis of 2007-2009 has given us a painful reminder of just how brutal the stock market can be. If you want guaranteed returns you have to accept low rates of return which often do not even keep up with inflation.

For those who decide to invest in stocks you must realize that the value of your investment is out of your control. The most widely accepted theory is that stocks are valued based on their underlying company’s fundamentals and its future outlook. In actuality their value is determined by nothing less than how much someone else is willing to pay for the shares that you own. The whole system is based on confidence and when markets are unstable that confidence erodes and share prices plummet as we saw in 2007-2009.

If you have decided to accept these risks in return for higher long term returns then let MarketBeaters guide you along the way.  Our disciplined approach to long term investing has a track record of consistently outperforming the general market.