Forget Jon's Rage: Analyze the Market

Stewart's attack on Cramer aside, stocks can give good returns
By Kevin Spak,  Newser Staff
Posted Mar 14, 2009 3:34 PM CDT

(Newser) – Hammering Jim Cramer on TV the other night, Jon Stewart bemoaned the fate of his 75-year-old mother: “She bought into the idea that long-term investing is the way to go. And guess what?” Cramer replied, “It didn’t work.” And for many Americans, that was the takeaway: The stock market is for chumps. But let’s not allow rage to blind us from rationally assessing the market, writes Tom Petruno in the Los Angeles Times.

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In the last 16 months, we’ve wiped out 12 years of stock gains, and 12 years “qualifies as ‘long term’ for most people,” writes Petruno. But if you need a 7% annual return to retire comfortably, you have little choice but to bet on stocks. With a long time horizon, it’s still a good bet. Still, remember that it is a bet, “a game of chance that offers probabilities, but absolutely no assurances.” (Read more stock market stories.)

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