Improving Economy: Why Now is the Time to Invest in the Stock Market

Have you noticed the vast improvement in the stock market over the past month and a half? Investors certainly have, and that is why now is the time to open up your wallets and place your hard-earned cash in the market again.

After hitting a low near 6,500 in early March, the Dow is back up into the eight thousands, and has been for a few weeks now other than the occasional dip into the high seven thousands. This climb is not just by mere chance either. Unemployment has steadied and the economy seems to be slowly progressing toward health again. While economists, as usual, disagree as to when we will finally see the end to the recession, most do believe that it is coming, and it seems to me that it is coming sooner rather than later.

Why? Some good signs are slowly creeping into view. First, as mentioned, is the steadying of unemployment. Secondly, Americans seem to have more trust in the economy as of late. On April 6, 2009, the New York Times published an article* about how American's outlook on the economy has greatly improved recently. With an increase in confidence in our economy (and in job security) comes an increase in spending, which stimulates the economy in and of itself. Through this, the economy can be stimulated through a simple change in opinion.

And this change has been shown recently through the change in the stock market. Not only has the market seen much more profitable times recently, but it has also seen more steady gains and losses, rather than drastic changes from day to day. This is a good sign. The market should gradually increase and decrease barring substantial news, and this is exactly what has been seen in the market as of late.

So why is now the time to buy? In addition to all this, stock prices are at their lowest point in years. Many stocks can be had for very low prices that present a great value. Even if it takes some time to come out of this recession and to get on the right path, buying now will pay off in the long run, as buying low now will set up your portfolio for great future earnings.

Things are looking up for the future. Now is the time to buy. There may be a dip here and there along the way, and the rewards may not come until a few months from now (or even within the next year or two), but they are coming. Plan ahead, sit back, and enjoy the ride.

As always, please remember that this is just the opinion of a fellow investor. It is solely your choice whether you take my recommendation to heart or take it with a grain of salt. Best wishes for all of your investing decisions.

*Source: http://www.nytimes.com/2009/04/07/us/politics/07poll.html?_r=1&scp=1&sq=poll%20finds%20brightening%20outlook%20on%20us%20economy&st=cse