Why do some people I know say they never made money investing in stocks? Are stocks really good retirement investments?
Some investors maintain a short-term perspective, buying only on good news (when the share prices are high) and quickly selling on bad news (when prices are low). There are no guarantees with stock ownership. Yet many patient investors have enjoyed very attractive returns over 10- and 20-year holding periods. Many retirees have 10 to 20 years to leave a portion of their money invested. Stocks are an excellent investment for a portion of their retirement investments, as long as your program uses some kind of technical analysis, following the flow of money into and out of the markets. Buying and holding, hoping for the long term high return averages of stocks to prevail is asking for trouble.
