The stock market is currently heading back in an upward trend. There’re still many companies that are still cutting people and are heading to closure too. It depends on the particular company. Not all companies are doing poorly currently. Some companies are still performing well under this kind of economy like Coca-cola or McDonald’s if you have their stocks. It’ll depend on the industries that you bought. If you bought with the right company then you’ll be doing fine. Companies like Apple or Microsoft are still doing great. They’re not losing much in this kind of economy.
You can still buy stocks in stable companies. Prices per share could have dropped in this kind of economy and you can benefit from it. If it goes up within a year or two then you have made the right choice. Many companies are still in trouble and they’re heading toward closures. You just have to avoid these kinds of companies. If you’re experienced and you’re a good analyst then you’ll be able to pick the right company. A good stock owner knows a good company from a bad one. You should be familiar with all aspects before you buy your stocks. If you possess good analytic skills then you will have no problems assessing a good stock from a bad stock.
The stock market is not a generalization for all companies. It’s only a generalization and all companies perform differently at all time regardless of the economy. A good company can fall in a good economy and a bad company can rise in a bad economy. It’ll depend largely on the firm’s financial status and current revenues. The economy does have an impact on some companies but not all companies. People still use Microsoft and Apple. Google is still booming. McDonald’s have no problem selling their meals. It’ll depend on the company. What you need is a great set of analytic tools so that you will make the best choice. There’re the basics that you should know and once you know the basics you’ll do fine. Stocks can be a great investment if you have a clear understands of the process and of your company.