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Lindley Estes is a business writer for The Free Lance-Star and This blog is on Fredericksburg-area business. Send an e-mail to Lindley Estes.

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Bear market good for young investors

My Business Browser column in Sunday’s FLS will be about how bear markets create opportunities for young investors. It will be based partly on a recent report put out by T. Rowe Price. Click here to read that report, which starts on page 11.

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  • lgross

    The article is written as if investing and the
    markets are more or less static over the longer
    runs and I don’t think this is true any longer.

    The events of the last few years has shown,
    IMHO, that the average non-Wall Street (Main
    Street) investor of personal funds is basically a
    chump where his money becomes game money
    for those higher up on the food chain.

    This country is not the country that existed in the
    1930′s and 1970′s. The world has become a
    much more potent competitor in many of the
    markets that the US has virtual total sway in.

    No longer. Much of the money made these days
    on Wall Street is made by making essentially
    bets on money flow and commodities…

    If I were a young investor right now.. I’d be
    looking for ways other than investing in Wall
    Street to protect and secure my money…

    right now.. I have a small nest egg separate from
    my pension – and right now it is in Govt securities
    ..out of the stock market and probably will stay
    out of it for some time to come.

    I do not think I’m alone.

  • freehling

    Government securities are certainly safe in one sense, but I worry about inflation sapping the value of the payouts you get. Plus you have virtually no upside. I agree that it’s not enough to invest in U.S. stocks, since about half of the world’s market value is outside our borders. I think it makes sense to put about half your stock money into an overseas fund and half into a U.S. fund. I would say that bonds have a place in a portfolio, as does real estate, but IMHO it doesn’t make sense to abandon stocks.

  • lgross

    here’s what it boils down to for me. Do I have the
    expertise to be able to understand world markets
    sufficient for me to risk my money buying and
    selling stocks?

    Answer = No.

    question 2.

    do I trust the folks who represent Wall Street to
    take my money and invest it prudently – perhaps
    in Overseas stocks.

    Answer: Hell no.

    In time, perhaps this will change but right now.
    Wall Street and the folks that represent them are
    not in my “good guys” book.