Looking at Google Finance for the Dow Jones Industrial Average [DJI] index, we can see why people are concerned about their investments. Of course, this is just a broad average, but it's a damn fine indicator.
So far this year, with the exception of the very first day of trading, the DJI is flat... no gain... and threatening to decline as news in Europe worsens and the U.S. economy muddles along.
Over a one-year span, the DJI has been essentially flat.
Over a five-year span, the DJI has dropped 9%.
And since the end of 1999... more than 12 years... the DJI has managed less than 10% gain. That's less than 1% per year.
If we compare the Consumer Price Index to that, we can see that in real terms we are are walking backward with our investments. Of course that is a generalization. Gold bugs will claim victory while others will be wallowing in losses, but even gold prices have softened almost 8% in the last six months.
The CPI has increased 31% while the DJI has gone up about 10%. That's walking backward.
The near term appears to be a risk of more losses in investments as Europe seems to be heading into an economic tailspin that could be contagious for the rest of the world. Cash may be king for awhile. Those 5% guaranteed annuities of 8-10 years ago that were then trashed by the "experts" look pretty good now. I'd hold off facebook, too.