Friday, January 28, 2005

GDP and Stocks

With economic uncertainty continuing, American corporations are holding fast to large reserves of cash, hoping for a better economic environment in which to expand. And as the recent merger activity has shown, many companies are opting to use that cash with elections in Iraq on Sunday, a Federal Reserve meeting beginning Tuesday and the Labor Department’s monthly job creation report due next Friday, investors used the GDP figure as another reason to sell stocks ahead of these uncertainties to buy other companies. I personally believe that if I had money in the stock market that I would leave it there. The economy is continuing to grow but that is not to say that I would not sell stock and invest the money in another company which is doing well. I believe that there have to be some people who are willing to take risks. What is your opinion? Do you think that these events should really have an effect on your decisions you make about the stock market? Why do you think some people are willing to take risks while others will sell stock right away?

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