Many investors were frightened away from equities because of the 2008 crisis. This volatility continues today. There is no shortage of bad news available today with 24/7 news programs. There are fear mongers everywhere, predicting the forthcoming doom.
This is where the Wall Street bullies make the bulk of their money. They make money selling ‘new’ products into the unending fear. Investors are looking for stock market returns with Treasury bill risk. The Wall Street bullies are selling products with guarantees and no risk.
There are no high return/low risk asset categories or investments. No matter how sound the logic or plausible the story, this just does not exist.
The devil is in the ‘fine’ print of the contract. These contracts are flexible enough to make sure the bullies make money without regard to the consumer/investor.
Remember the Wall Street bullies make money when money moves from one hot asset class to the next. Successful investors realize that investing is about developing a sound, prudent strategy and remaining disciplined to that strategy. Jumping from one hot strategy or asset class to the next will only spell doom for the investor.
No one can predict the future. Yet this is precisely what the typical investor is seeking an accurate prediction of what will happen next.
They will move from one asset class to another. This is the equivalent of ‘musical’ asset classes.
To succeed long term in reaching your financial goals you must own equities….globally diversify….rebalance.