Mosaic Co (MOS), Anadarko Petroleum Corporation (APC), General Electric Company (GE): Why Are So Many People Afraid of the Stock Market?

Chart

The chart is another key indicator about whether a company is destined for greatness or ruin. When looking at the chart, I look for great companies that are undervalued. Since the recession, my strategy has included monitoring the pre-recession value of the stock and looking at its price today. While the vast majority of great companies meet or are above their pre-recession prices, a few gems are still available. General Electric Company (NYSE:GE) was priced in the low $40-range leading up to the recession, and then it fell to under $10 per share. The firm has been priced in the $20 range for the last two years. The business is still strong and has a massive amount of potential. General Electric is making acquisitions, which is a sign that the company is in a strong financial position for growth in the years ahead. For example, in May, General Electric Company (NYSE:GE) was approved to buy Lufkin Industries for nearly $3 billion. This helps General Electric to increase its presence in extracting natural gas and oil from shale.

Investing isn’t for everyone

It’s fair to assert that most people feel more comfortable giving their money to a financial adviser than investing it themselves. Many others will happily spill their money into a bank’s mutual fund, which will earn them an average of about 8% per year. In taking a look at many other investment vehicles, the story dims further. To me, investing in the stock market is a no-brainer, but until you feel comfortable with the stock market basics, it’s best to consult a professional.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool owns shares of General Electric Company.

The article Why Are So Many People Afraid of the Stock Market? originally appeared on Fool.com.

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