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June 1, 2009 12:21 PM

Will Government Involvement in Businesses Affect Stock Returns?

By
Larry Swedroe
(MoneyWatch)  I've received several questions on how our government's involvement in major businesses (and the economy as a whole) may affect the markets going forward. The conventional wisdom seems to be that this socialistic shift will negatively impact investments.

We certainly can't know for sure how this level of involvement will affect markets going forward. But we can look at the historical evidence to see how this has played out in the past. The evidence shows that higher levels of government involvement have not been a drag on stocks. In this video, I'll explain further why you should not worry about this effect.

© 2009 CBS Interactive Inc.. All Rights Reserved.
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