Thursday, September 9, 2010

The New Young Investor: Shunning Stocks

The other day, I read this article on the Money section of CNN's website, entitled The New Young Investor: Shunning Stocks.

To be honest, the article didn't surprise me that much. Investing is very emotional for everyone. I can see how those of us in our 20s and early 30s might be confused/scared/nervous after seeing many of our parents and elders lose a lot of money in the stock market over the last decade.

However, I in no-way-shape-or-form believe that Generations X and Y should be pulling all of our money out of the stock market. It's a tried-and-true form of income, especially if you are investing for the long-haul of 35-40+ more years. Sure, even I've been slightly skeptical at times. But then again, I've only been investing for two years come this October! Of course the market is going to fluctuate during that short time frame, especially given the economic situation/recession we are in. 100% of my Roth IRA and 401k investments are in pure stocks. No bond funds for me! Of course, I do have a sizeable chunk of money is savings... but those are just for rainy days and I expect to deplete/replenish those accounts as life happens. My retirement funds are for the LONG haul!

I have faith in the stock market. I won't stop having faith in the stock market unless it completely implodes and disappears all together one day. I'm going to continue to invest and have a bit more money than those who have decided to pull out for the time being and who are trying to "time the market"... it's impossible to do!

What are your thoughts on the article?


Frugalista September 9, 2010 at 1:39 PM  

I have nothing from my 403b going into stocks. I am a chicken! It felt to stressful for me to worry about so I played it safe.

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