Do you trust the Stock Market?

Answer 1

No.

Answer 2

I absolutely trust the market. However, it is not for the faint of heart or those wanting a secure short-term return.

If you invest in good companies, which means companies with strong fundamentals and a good market segment to grow in, then you can make good returns over time.

Unfortunately, under-educated investors are expecting quick returns, or are unwilling to take short-term losses in order to get long term results. So, they buy high (when a stock is "hot") and sell low (when a bad news blip hits the market).

Stock can offer better returns than debt instruments like CDs or bonds. But you pay for that higher return with risk. There is no sure thing. If there was, everyone else would have already beat us to it.

Answer 3

The market is trustworthy. Some market participants may not be honest and cannot be trusted, but for the most part you can trust most people who operate in the stock market. The stock market performs valuable social and economic functions. It provides liquidity for investors; it enables businesses to raise large amounts of capital and accomplish what can only be done on a large scale. The stock market is a vehicle that offers investment opportunities to anyone who wants to participate. The smallest investors can participate by investing in mutual funds and others invest directly in stocks. Investors have wide choices, from high quality safe and stable companies to highly risky speculative issues that promise a greater return if they are successful, and everything in between. Stocks trade at prices ranging from a few pennies per share to hundreds of dollars per share. Investors can trade stocks at incredibly low commissions, unlike real estate markets where commissions are quite high.

Historically the stock market has provided a return of about 10 percent, which is far better than investing in CD's, government bonds, and savings accounts. Without stock markets, it would be very difficult for workers to accumulate retirement funds. An important function of stock markets is the dissemination of financial information. Markets have requirements for companies whose stocks trade in them on the kinds of information that they must disclose about their operations. As a result, stock markets approach what economists label as perfect competition with all information available to all investors almost instantly.

This is not to say that there are no problems with stocks markets. The problems result when unscrupulous and dishonest participants act improperly for their own benefit at the expense of investors. While these cases make headlines and receive a lot of publicity, they are a very small percentage of all the activity that takes place in stocks markets in the US.

Answer 4

No way. The stock market is basically sophisticated gambling - so no. Don't ever trust the stock market.

Answer 5

hi, The marketplace is going up and it does come down, and cycles are area of the approach, yet once you upload in crooks like Madoff to the blend people gets burned badly. The question is will all of madoff's criminal expert and elect acquaintances enable him off ordinary. All you're able to do is take each penny and actual merchandise faraway from those greed freaks, and something gets a clue. meanwhile placed your money in a secure someplace using fact we've not seen the backside on the inventory marketplace only yet. i think of it is going to the mid 6K variety on the DOW before we creep back upwards..

Answer 6

Get rich quick schemes in the capitalist business world, (buyouts, IPOs, conglomerates, acquisitions, mergers, and the stock market), do not actually work. Remaining solvent does not actually exist within false economics capitalism.

Profit existing in the capitalist business world, or millionaires existing within capitalism, is pathological deception committed by the 21 organizations spying on the public with plain clothes agents, (with covert fake names and fake backgrounds).

Actual economics is the persons paying the monthly business loan payments of companies voting at work in order to control the property they are paying for.

Capitalism is the psychology of imaginary parents, false economics, and the criminal deception of employees that are paying the bills (including the stocks and bonds, or shares) of companies.

Anti-democracy republicanism is the psychology of imaginary parents and false government.

Answer 7

Trust it? Not sure what that means.

I have the majority of my 401k ($125,000) in stocks. I am diversified in different segments of the market and I have a bigger than usual percentage in International funds right now.

Answer 8

Not if you dont have a clue to how it works or how to invest properly, you could lose your life. The average person should not trust it, the educated person can get away with making tons of money with it.

Answer 9

Check out this site and you tell me?

http://zfacts.com/

Answer 10

Not in particular.