Are Things Really Improving?

If you have been watching the news of late you will realize that many of the Wall Street professionals are “willing” the market upwards. Can it be said that the market is on an upturn simply because a few companies have announced profits during the first two quarters of 2009? Definitely not! There are several factors that alert us things are really not improving: (1) unemployment is still high, (2) house prices are still dropping in many markets and (3) the government is intervening in this “apparent” upswing a bit too much.

At best the upswing is artificial. It’s designed to convince the general public that it is safe to come outside and spend, spend, spend! After your family’s monthly obligations are met do you have excess income? If so it is best to invest in something that will produce income, whether short or long term. Opportunities may include a business venture or some other type of investment.

With Christmas coming, this artificial upswing will seem to be real. The goal here again is to get the public to spend money in order for the economy to turn. Be wise you’re your spending in this upcoming holiday season.

Making Money During Cramped Times

Many say that this is a time to save all that you can before the financial conditions get any worse. That is good advice for those who have no money to risk but it is not the best advice for those that do.

If you have some money to risk, the best thing to do now is invest some of those dollars in the stock market right now. That's right I said the stock market.

You might think I am crazy but this is great advice.

If you find quality companies that have a relatively low stock price right now, you should buy stock in those company. You must however look to hold the stock for the next 3 to 5 years though.

The stock market now is like giving birth to a premature baby. You will go crazy attempting to check the progress of the child everyday. Doctors say that progress of the premature child's growth should be evaluated from month to month. This holds true for your stock purchase, look at the month to month development of the stock.

Another bit of advice is to buy stocks that pay dividends. The idea here is to see yourself holding that stock for the next 3 to 5 years as well, but reinvest the dividend into purchasing more shares of the same stock.