Saturday, May 30, 2009

Patience Is A Virtue In Investing

Patience Is A Virtue In Investing
I know the stock market is going gang-busters. Many economic pundits say the worst is behind us and the market has bottomed.

Even the revered Nobel Prize winner, Paul Krugman, believes the global economy free-fall may be ending soon.

I am not keen to invest heavily in the stock market and have cautioned my friends and relatives against using margin accounts or leverage to pursue profits. A major correction may happen soon and our money could be trapped. In the worst case scenario, we are forced to accept huge losses from liquidation of our stock holdings.

Patience is a virtue, especially in investing. There are better ways to spend our hard earned money than speculation.