wise investing can include investing in index funds instead of investing in stockswise investing can be simple investing Investing in index funds can be helpful if your the type of investor who likes to ride out a bad market. Stock investors do not always make most the money. However I recommend investing in stocks you should not totally rule out index funds. Many times there are index funds that are out performing the market by a a lot when we are in economies like we have right now. The market fluctuates in the short term but if you have a diversified fund or index fund, this may server to counter short term fluctuations. You need to ask yourself though are we in a short term market fluctuation or are we currently have longer term problems and issues with our economy. While there have been many people since the great depression and onward saying that the end is near and everything is about to crash they rarely have been right. There could be another depression, which is why if you are worried you should allocate some of your cash investing in index funds - something that resemble and mirrors a market index performance record. You shouldn't follow brokers advice investing in the stock market - vs investing in index funds for wise investingIn our current economic times you want to include indexes that focus on growth but not what the GENERAL markets are doing like the DOW and the NASDAQ. You should only be into market indexes that mirror the DOW and the NASDAQ if we are in a good economy which admittedly we aren't right now. How to protect the assets you ownThe economy will start getting better thereby allowing for different investments in indexes in stocks when, one the value of the dollar starts going up, two housing starts to rise in value again, three unemployment starts to get lower. When these three things have reached their bottom's you will have a good indication of what will happen next in all out financial and free markets. |