2006.9.4  Jeremy Siegel

It’s a well-known (and true) Wall-street aphorism that markets hate uncertainty. Investors  don’t like to make commitments when there are major risks ahead. Anxious investors claim they will put money in the stock market only when major sources of uncertainty are resolved.

But  there has always been uncertainty in our economy. If investors waited until all uncertainties worked themselves out, they will never have bought stocks.

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Professionals call the ever present risk facing investors  the “Wall of Worry”.  History shows that stocks have often climbed  this “wall of worry,”   amply rewarding investors who stay with equities. Uncertainty is one of the reasons why the stock market has over the long run been such a good investment and why stock returns have sported such a hefty premium return over fixed income assets.

 No one knows what the future will bring .  there will always  be risks in buying stocks and if worst-case scenarios  materialize, stock will no doubt fall.  But I think  the odds favor continued economic expansion and if this turns out to be the case, stocks will no doubt be your best investment.