RE: Opening statement--investment in stocks, bonds etc
Date: Tue, 18 May 1999 15:45:26 -0400 (EDT)
From: Stephen Wyman <swyman@altavista.net>
Subject: RE: Opening statement--investment in stocks, bonds etc
<< Mr. Reischauer seems to believe that the stock market is a vehicle that runs in only direction--ever upwards. >>
The trend, over time, has been a continuous increase in value. Yes, there have been dips (including massive dips such as the Great Depression) in the stock market; refer to the previous sentence.
<< Then there is the matter of governments role in keeping companies from pushing competition out of the marketplace? >>
Investing in Index funds means that one is not buying directly into any company. Index funds spread the investment over numerous companies in a variety of different industries. Buying multiple, dissimilar Index Funds spreads the invested money around even further, reducing risk & influence of/over any one company. Management costs of Index Funds is usually < 0.5% of the annual returns.
<< Then too, let us not forget the plight of Orange County, CA.
They invested their money using a well known brokerage house and lost, lost, lost. >>
Index Funds are bought from multiple sources, whereas Orange County put all it's "eggs in one basket;" a stupid move that cost them dearly.
You don't have a bridge, but you could learn much more about investing. A good start is the "13 steps..." at the Motley Fool web site: www.fool.com (please, don't let the name throw you).