The stock market today is a speculative crap shoot where the whole market can decrease in value as much as 50% in a few days or weeks as during a crash and the extreme volatility in individual stocks is an indication that their price is being manipulated by big money and fast computers and not small investors. In effect, price movement is no longer based on fundamentals or evaluation of tangible assets.
New technology stocks are where much of the speculation is occurring and if it is a company with a truly innovative product or service then it can experience incredible short term growth. However, long duration growth is soon stopped by big technology firms which buy them up and incorporate them into their companies to eliminate competition or to give them a future technological competitive advantage.
Investing in an upstart IPO and holding on to it for the long duration is no longer a realistic goal for an investor hoping for million dollar gains twenty or thirty years from the start of an IPO.
Finally, the stock market is a short duration speculative investment which can tank at any moment all determined by whether the big money invests in it or withdraws its financial support to suddenly invest elsewhere. The stock market has become a short duration gambling enterprise and not a serious long duration investment.
If you want guaranteed retirement money security for old age then don’t invest in the stock market for the long duration. Stick with real estate, diversified municipal bonds, or a precious or rare commodity such as platinum and gold when it is not being sold at inflated prices because big money also manipulates commodity prices and makes them go up or down at will. The real value of a metal commodity is the price it takes to mine and refine it so if the commodity price is three or four times its production price then don’t buy it at this inflated value.
You probably won’t become a millionaire but you will maintain the value of your hard earned dollars until retirement when you can spend some of it without finding out that inflation has reduced your savings in a bank to a pittance over a forty year period.
If you want money security in your retirement years, don’t invest in the stock market for the long duration. If you want to gamble with your hard earned money and probably lose most of it then play and get burned in the stock market!!!!!!
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