Are stocks really a good investment?
The mantra you always here is that no matter what, in the long run the stock market always goes up. So if you have lot’s of time, say before retirement, it’s worth investing in the stock market even if there are ups and downs like we’re seeing now. Most people hold stocks via various schemes like 401Ks, RRSPs or Pension Funds administered by your bank. I personally have invested in ETFs (Exchange Traded Funds) that mimic specific markets or market segments, they’re usually cheaper than mutual funds and since I don’t have the time or skill to pick individual stocks (few people do) it’s usually a better return.
I wonder though, is it really the best way to invest? The Japanese stock market is currently down to a 26 year low. So if 26 years ago if you were a Japanese worker and you started investing in your stock exchange to get ready for retirement you’d be back where you started or lower.
I’m sure there’s all sorts of numbers to back up investing in the long term but in times like this you have to feel for anyone close to or in retirement who’s seen their nest egg take a huge hi
