Monday, September 12, 2011

Another Video

Here are two more videos on why stocks remain an appropriate investment for long term investors.  The first video is of Professor Richard Sylla of NYU.  Here is a link to the accompanying article, and here are some good quotes:

"People ought to take a longer view and think in terms of years and even decades," Prof. Sylla says. "Most people are quite pessimistic right now. I am saying: The market may go down from here. It may go up. But if you look at the long sweep of history, this seems like a good time to buy because the average return is down near the bottom" and is likely to go up...

Prof. Sylla isn't trying to predict short-term behavior. He doesn't know whether stocks will be higher or lower at year end, and he isn't losing sleep over Greece, the sputtering U.S. economy or other problems now haunting stocks...

"We may not be able to get enlightened government policies until things get worse than they are now, which isn't a happy thought," he says. But in the longer run, "I think the country is going to recover and go on to prosperity again as it always has."