Despite some stock investment research that reveals bad news on the employment front, and with housing news continuing to be bad, and the prices for food, oil, and other necessary commodities continuing to rise, the American economy doesn't seem too bad...yet. However, some knowledgeable stock analysts think that the market is being artificially inflated by government action, and that the sensible course of action is to remove some of the protections for markets and investors and let the chips fall where they may. According to Stephen Roach from the venerable investment firm of Morgan Stanley, "Washington policymakers and politicians need to stand back and let this adjustment play out. Yet the U.S. body politic is panicking in response – underwriting massive liquidity injections that produce another asset bubble and proposing fiscal pump-priming that would depress domestic saving even further. Such actions can only compound the problems that got America into this mess in the first place." Reading articles like this and doing my own stock investment research on an almost daily basis tells me that we Americans need to be saving more cash, spending less, and investing our money not in the latest hot stocks to watch, but in dependable, gray securities and mutual funds that spread the risk out. At this moment in time, stock investment research counsels caution.
