Market

Everyday on the business channels various experts give advice on stocks. Why aren't they retired instead of working for some brokerage firm. They use their expertise to explain why the market did yesterday what it did. Often times the reasons they give for the market rising are the same reasons they give a few days later for why the market is dropping. All this is to keep a job and try to influence the small investors while the big pension funds and big banks determine which way the market will tend. Since 1980 the market has averaged 6% per year and the average inflation rate has been 3.5%. About the only thing the small investor can hope for is to get into an index fund and stay there. If you want to try and time the market or pick a winner, use extra funds for that because you are no longer investing, you are speculating. The rule is only speculate with money you can afford to lose.