Many investors experience substantial losses during economic downturns, however, financialweb.com still recommends investing in the stock market. Prices are lower in downturns, and as a result, values exist that might not otherwise be available. Investors are reminded to "buy low, sell high" as a means of increasing their money.

On the Other: Alternatives to Stock Market Investing

Bankrate.com offers alternatives to the stock market for nervous investors who would like to explore other options. Its suggestions include prepaying the mortgage, contributing to retirement or medical savings plans, purchasing precious metals, donating to charity, investing in real estate investment trusts (REITs) or purchasing collectibles, such as comic books or wine. Other alternatives include certificates of deposit and Treasury bonds.

Bottom Line

BusinessWeek.com notes a good deal of pessimism and uncertainty among investors. The stock market can be unpredictable and erratic, according to financialweb.com, and is not for "the faint of heart." It suggests a diversified investment strategy for protection, which includes some assets invested in the stock market, with the rest invested elsewhere.

Source:

BusinessWeek.com: Stocks in 2010: Prospects Range from Gloom to Boom

Bankrate.com: Alternative Investments in a Volatile Stock Market

FinancialWeb.com: Why Should You Invest in the Stock Market

Resource:

MarketWatch.com: Learn the Stock Market: Getting Started

MSN.com-Money Central: 10 Investing Basics from Buffet

U.S. News & World Report: How Much Should You Invest in Stocks