According to a recent survey released by Prudential Financial, fear and disillusionment have once again grabbed hold of many individual investors. Nearly 60% of the survey respondents said that they had "lost faith" in the stock market, while 44% said that they are unlikely to ever put more money in the stock market again. (Why have stocks historically produced higher returns than bonds? It's all a matter of risk. Check out Why Stocks Outperform Bonds.)
Those are sobering statistics, but not terribly surprising. When times are good and the markets are running hot, people feel great about the markets and throw money at stocks. When times are bad, people swear off the markets and promise "never again" - until the next big thing dominates the headlines again.
For those who don't wish to ride that pendulum between frenzy and despondency, there are several solid reasons not to fear the market.
To read the complete column, please click the link:
http://financialedge.investopedia.com/financial-edge/0611/5-Reasons-Not-To-Fear-The-Stock-Market.aspx#axzz1Q2GXzo00
No comments:
Post a Comment