If You're Still Scared Of Stocks, Think About This
Due to several recent dips in the stock market, many individuals remain cautious and have steered clear of stocks. That’s a mistake.
In the aftermath of every bear market, many individuals swear off stocks. They resolve to never again be burned by the stock market. This is a natural reaction but not necessarily the smartest one.
People who steer clear of stocks could indeed be right, since no one knows when, or even if, stocks will rise to previous highs again. But people who stay out of stocks could miss a lot of upside if they rebound in the coming years. Again, no one knows. And that’s the point.
Because no one knows what will happen, you do not want to make big bets either way. You want to be in a position to participate if the stock market gains, but not in a position to lose too much. This is where your personal financial plan comes into play.
Your plan gets into the details of how much you can risk in stocks. Your financial plan plots a long-term course of moderation. It examines where you are now and where you want to go, and then strategically approaches how you can get there.
If you are still scared of stocks, it’s time to peek out from under the rubble, see how the landscape has changed, and analyze your situation systematically with the help of a professional. We’re here to help you.
This article was written by a professional financial journalist for Preferred NY Financial Group,LLC and is not intended as legal or investment advice.