August 19, 2009

Warren Buffett's 'Greenback Effect' Warning: A Call to Buy Stocks - Warren Buffett Watch - CNBC.com

Warren Buffett's 'Greenback Effect' Warning: A Call to Buy Stocks - Warren Buffett Watch - CNBC.com: "Warren Buffett's 'Greenback Effect' Warning: A Call to Buy Stocks"

If you're not buying stocks - what are you waiting for? Do not depend solely on savings as the value of your savings are eroded by inflation and increased taxes. Financial freedom is about taking advantage of opportunities, and the opportunity to buy stocks this cheap won't be around forever. Do more than just invest in a 401k or 529 plan - open your own portfolio in Sharebuilder, TD Ameritrade, Scottrade, etc. and get started investing.

The US dollar index indicates that the dollar is getting weaker - which ultimately means that oil will eventually become pricier, along with more inflation that is a result of the government providing us with all this "stimulus", TARP, TALF, "bailouts", etc. Someone eventually is going to have to pay the government's tab - guess who? You and your children will have to pay these bills in the form of either increased taxes or increased inflation. Since most politicians need your vote to keep them in office - they won't mention the thought of increasing your taxes to keep inflation low - therefore, inflation will run high while your taxes remain the same.

Stocks are a better hedge against inflation than cash - period. Don't suffer while the economy is down AND get left behind while the economy is on a rebound. The recession is over...get in the game.

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