5 Reasons to Invest in America Right Now

Posted on | December 6, 2008 | 2 Comments

Subprime blogger has been very negative on the state of the economy and future of this country, but today, we are going to explain why you should should invest in America right now.

1. A cyclical bull could have been born after carving out a bottom in the stock markets.  I still believe we are in a secular bear market that began in 2000, but there are often very strong cyclical bulls in every bear market.  The overall market dropped over 45% from its highs which is very comparable to the 48% drop the markets saw in 1975 before seeing a strong cylical bull that gained 53% in less than a year.
2. Fear! Ask almost anyone you know and they will tell you that it is a horrible time to invest and that the markets are going to continue to fall.  Even CNBC and the major news channels have gotten extremely pessimistic.  This is the exact time when you should put your money into the stock market.
3. America is resilient. No matter how bad things get in America, this country remains resilient.  We have been through several major wars, some horrible leaders in office and several credit crises yet we remain the strongest financial country in the world.  We will get through this!
4. Markets anticipate the Economy. While the economy is in bad shape right now, markets predict the economy rather than follow it.  One of the worst financial crises in the history of this country has happened, but it seems that the bulk of it is now behind us.  If our government can successfully get us through this, the economy will greatly benefit and be even stronger.
5. We learn from our mistakes. Some of us have never lived through a crisis comparable to what we are going through now.  This will help us to realize that we do not need to spend such a great deal of money without saving.  It will also teach us to buy objects we CAN afford.  In the future, we will remember these troubling times and hopefully not make the same mistake twice.

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