Gasoline prices have just hit record lows. We have not seen these kinds of prices in years. I just filled up today for less than twenty dollars for the first time in probably 8 years. People are not dreading going to the pump anymore. It is a great thing. The price of another product has been falling dramatically as well…stock. Yet with prices at record lows that we have not seen for years, people are hesitant to buy them. What is wrong with this picture?

I have never seen any other product drop in price by 50% and not get purchased more often. Why is it that when the value of these investment products decreases, demand for them falls with it? It simply does not make any sense! When shoes are 50% we buy them. When clothes are 50% off we buy them. Whenever any retailer or department store announces 50% off, people flock by the thousands to come buy those products at a great price. So why are stocks any different?

Right now you can buy into investments for only a fraction of what it would have cost you just 5 years ago. Here is a good financial tip- always do what the rich are doing. They got rich for a reason. They stay rich for a reason. What is Warren Buffet doing? He is buying into the market in the millions of dollars. So why the hesitation from the average consumer? The answer is risk.

For some reason when the market is volatile, people see investments as being risky. Well, yes, in the short run if you have a stock for only one year, you will see its value fluctuate quite a bit. But investments are meant to be long term. Buying stock is meant to be a long term investment. History shows that even during the Great Depression, the market will bounce back. Yeah, you may buy stock now that tumbles down tomorrow. Don’t worry. Stick with it. After 20 years you will be pretty glad you did it.

Maybe the folks on Wall Street should just come out and say “Hey people! There is a huge sale on stock right now! Prices are at all time lows! Come buy some stock while there is still some left!” Hey, replace the word “stock” with movies, clothes or anything else and it would work. So go buy now. The best time to buy is when it is cheap. The best time to sell is when it is expensive. Not vice versa.