If I hadn't invested…

Feb 26, 2009 by Adam C. Powell, Ph.D.

During the last quarter of 2008, Like many Americans, I lost a lot of money in the stock market. Sometimes, I wish I had done something else with my money over the past two years. Although hindsight is always 20/20, it sometimes is useful to make a retrospective analysis. While I could have made better choices, I could also have made much worse choices.

-I could have spent the money instead. Then, it would be fully gone!
-I could have held it all in cash (in the short term, this might have been better, but in the long term, the money might .lose value due to inflation)
-I could have bought a house. Then, I would have an asset that is difficult to sell, requires high upkeep, and is prone to depreciation in this market.
-I could have bought a car. Once again, heavy depreciation and difficult resale.
-I could have kept it under my mattress. While I might not have slept as poorly due to financial concerns, the lumpiness of the bills sure would have disturbed me!