Stocks ended sharply lower today, Friday. Financial sector continues to worry - Citigroup made a statement about further write-offs in the second quarter, auto sector has been worrying about debt rating for GM and oil prices have rebounded. Add to that an Israeli show of force to Iran, no wonder the markets are n a downward spiral.
Dow reached lower than 12,000 mark for the first time since mid march. The Dow was at 13,489 on Jun 20, 07, 14,165 in Oct 07, 11,740 on Mar 10, and 08 and is at 12,029 today. Lots of volatility in the markets. The best place to park money is in cash till we understand the direction the market takes. Stock investing is a challenge right now. Index funds are the next best. The market most times is more intelligent than the average investor. Over a long haul, the market also provides significant growth. This may be a great opportunity to buy index funds. The money manager in an index fund just follows the market. In an actively managed fund, friction causes costs such as buying and selling commissions, advice for commissions, management expenses and so on. In an index fund expenses are quite low. This adds up over time. Always consult your investment advisor before you invest in the stock market.Technorati Tags:
Stock investing, shares investing, great returns, stock market
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