Economics 101 for Investors

Economics 101 for Investors - Vanguard: "The direction of the economy certainly matters. It affects the financial markets as well as how safe your job is, how your income may grow, what goods and services will cost you, and how much interest you'll pay to borrow. It's undeniably helpful to know some basics about the economy.

As an investor, however, you probably need to consider only one economic question: Do you think the economy will grow over time, as it has in the past? Investing, especially in stocks, is an act of faith in the ability of market economies to grow over the long haul thanks to the effort and creativity of people. If you believe the sweat and ingenuity of individuals will lead to long-term growth, you don't need to give lots of thought to short-term moves in the economy." Read more of this guest article.