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It's hard to know the best strategy in this economy.
President Obama said stocks may be a good deal as long as you have a long-term perspective.
"I think long term has to be 10 years minimum," said former economics professor Michael Lehmann.
This is the kind of portfolio Janet Brown of DAL Investment Company would recommend having.
"Money that will be needed in the next couple of years I'd say people should keep in cash, but beyond that I would say a good diversified growth fund that includes classical growth areas like technology," said Brown.
But buying individual companies may not be wise in this economy.
"It doesn't make sense to go out there and try to pick which specific company you want to own. You are much better off buying an index fund or diversified portfolio fund or buying into a long time strategy because there is a lot of risk that some of these companies could go out of business," said portfolio manager Jason Browne.
Mr. Obama's message reminds us of President Roosevelt's March 1933 radio fireside chat when he urged people to put their money back in the banks.
"It is safer to keep you money in a reopened bank than it is to keep it under the mattress," said President Roosevelt in 1933.
FDR also said hoarding was an unfashionable past time. So in today's economy was will it take to convince consumers to begin spending again?
Lehmann is confident the president's stimulus plan will help the economy recover.
"There is only outfit right now that can do the borrowing and spending and that's the federal government. They have to do it for us. And when economy starts to perk up again and it will, then we individually will feel confident enough to go out and spend," said Professor Lehmann.
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