Stock Market In A Rally...Should You Buy?

After months of watching the stock market take a dump, things have been starting to change. If you've been watching the numbers, the market has been in a rally for the last 4 weeks.

What does this mean to you? Should you buy? Is the financial crisis over?

Once again, there is no easy answer if you don't understand the fundamentals of the economy and wealth building. If you've read my previous posts, you know I believe the fundamentals suggest a high chance we will enter a period of "hyperinflation." This is NOT good for your money if you hold it in cash.

The Federal Reserve, in the past few weeks, has pumped trillions of new dollars into the system. In return, the market is up as is the price at the pump. So the question to be asked is, is this really an increase in value or simply a sign of a devalued dollar (inflation)?

In Germany, between WWI and WWII, they suffered a hyperinflation. The stock market soared in Germany during that time. However, when compared to "value" the market crashed. Therefore, a stock market raising in dollar value does not always mean it is increasing in "real" value.

My personal feeling is that there may be some good buying opportunities for some stocks. However, you do need to be a good student of the economy AND have preset buy and sell standards so you can get your money out FAST if needed..

Gold and Silver are, in my opinion, one of the best investments right now. They have held or increased in value during the current recession, and the fundamentals show they should do very well over the next few years. You will probably need to hold them for a little while to take you profits while the stock market might allow you to make some quick money now.

Remember, you MUST know what you're doing if you intend to enter the market now and make money. I fear many people will see the rally, enter the market, and then get wiped out because they are not financially educated.

I would be more than happy to teach you about the economy and investing so you can KNOW how to make good investment decisions.

Visit my website and enroll in the FREE financial education course today.


Pablo

FinancialCrisisAnswer.com