It's a Good Time to Get Back in Stock Market
Steven Pearlstein: Get in while lots of people are still out
By John Johnson, Newser Staff
Posted Sep 24, 2010 4:15 PM CDT
A worker on the floor of the New York Stock Exchange.   (AP Photo/David Goldman)

(Newser) – Bullish advice today from Washington Post economic columnist Steven Pearlstein: Get back in the stock market, specifically in "shares of large, solid dividend-paying companies." His "gut" tells him the market's pretty much done bottoming out. Why be optimistic? Because "so many other people are so pessimistic." Investors have shifted hundreds of billions from stock mutual funds into safer bond funds, and the resulting bond bubble is going to burst eventually.

When it does, "the smart money will move back to stocks or commodities," he writes. "That's likely to happen at the first sign that the economic recovery is picking up speed, or the first time someone from the Fed hints that zero percent interest rates won't continue indefinitely. That could happen in two months, or two years, but when it does, things will happen very fast, which means you want to already be in the market rather than fighting the crowd to get in."

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Showing 3 of 15 comments
denaliguide
Sep 28, 2010 10:04 PM CDT
Its not about the mattress. Its about the prices of what your money will buy. If you want to make an "accounting profit", yes by all means jump right back in. If you factor in that a postage stamp will cost $5 or a loaf of bread $20, then making an 8% annual return is not such a good idea. Inflation, deflation will come and go but prices will march on and impoverish you unless you know how to fight back. www.denaliguide.us
Brass
Sep 26, 2010 4:30 AM CDT
He is absolutely right! The time to invest is when everyone else is running scared, hiding their money under the mattress. Wait till the economy is 'lookin good' again and you will have missed the boat.
Mr_Joshua
Sep 25, 2010 6:34 AM CDT
I am reading a David Baldachi novel that talks of PM firms, as in Perception Management. Google it, it is interesting indeed. These firms literally manage the truth as those who are paying them wish it to be, through a wide variety of common technologies, manipulation of the media, and well planned "events", whether that client is a country or a private firm. Some journalists and key players in these events may not even know they are being played if these PM firms do their job right. The point here being that Steven Pearlstein is either on the take (paid off by the big brokerages), being played like an e string by a PM firm, or as a last possibility, incredibly stupid. This is part of a campaign to get people felling all warm and fuzzy, to feel that there is an end in sight etc etc. Hell, a few more well placed statements like this one and people will believe its all over. Don't believe it !! And you can call me......Mr Joshua