There is new fear that we may be headed to a double-dip recession; that Europe may be headed back into recession (if they’re not yet already); and that world financial markets are becoming increasingly unstable.
All the turmoil and fear is causing people to do some weird things. Gold has been bid high again by those who think market instability will make paper money worthless. On the other hand, you have others who are buying U.S. Treasuries because they think deflation will make your money more valuable.
The one constant seems to be that everywhere you turn, people are giving up on investments in owning companies, i.e. owning stocks.
When everyone else is fearful, what should you do? Well, it depends on your age. If you are under 50, today’s instability is irrelevant for your long-term finances.
Someone who is, say, 25 years old today won’t touch their retirement money until 2050! So there’s a great opportunity if you’re younger to put money aside via automatic paycheck deduction into your 401(k) at work. Do it faithfully every pay period through thick and thin and you’ll build your wealth over time.