Sunday, January 8, 2012

Year of the Yo-Yo

http://www.newyorker.com/talk/financial/2012/01/16/120116ta_talk_surowiecki

This column by James Surowiecki is an analysis of the not very promising coming year in the stock market and financial situation in America. Surowiecki starts by describing how bad the market is currently in America, with the high persentage of lass for investors and the volitile nature of the up and down stoock values. Surowiecki also offers somewhat of a solution to this problem. He suggests that investors put their money in index funds, but this is imporbable because the market is so risky. So, instead many investors are simply removing their money as a whole, and this hurts the market too. This applies the overall well-being of the country because this volitile market will negatively affect peoples' retirement funds and therefore hurt a capitalist society. Hopefully, the coming year's economy is not as bleak as Surowiecki predicts here in his article.

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