A number of investors have begun debating Main Street investing vs. Wall Street investing. With local markets tanking due to lack of capital funds, there has been an increased interest in finding ways to preserve local markets in order to preserve local jobs as well as to ensure that neighborhoods are better able to find ways to persevere through the issues that are making it harder to live life locally, such as gangs, gentrification, and urban decay. By investing in Main Street some investors seek to ensure that the city that they are in will survive and even thrive.
Investing in Main Street does have a number of advantages. This can include anything from banking at credit unions rather than national chains to donating time and money in local charities. It also means helping to raise funds for local companies. At the very least it keeps dollars in the local economy where they can do some good for basic services, such as emergency and government services. It can also help small businesses blossom into bigger ones, with all of the advantages that that entails. It also ensures that the forces of urban decay are kept at bay, and that people that would join gangs become more productive. Lastly it ensures that the local infrastructure becomes more robust.
However, there are still some advantages to investing in Wall Street. At the very least the risks are lower and investments yield greater results. Also, portfolios can be more quickly liquidated should the investor want to get out for whatever reason. There is also the advantage that the bigger company is a better known entity and as such most of the risks are already known. Of course, there is the advantage that the established company is already seeking ways to maintain investor relations, and that experience shows.
An investor should seek to split their money between different areas in order to cushion the blow against bad investments as well as seek some risky ventures in case they come through handsomely. Betting on Main Street may represent the riskier bet, but it can be well worth it. Not only can the risk be well worth it, but there is a certain reward in helping one’s community and the community does recognize that investment. For those looking for an investment that is more than just financially rewarding, investing on Main Street is definitely the best way to go.