The last year in stock markets and exchange traded funds (ETFs) have left many investors feeling battered, bruised and untrusting of the market’s recent rally. But you can only sit out so long.
Despite the recent rally, Gail Marks Jarvis for The Chicago Tribune says that money in stock funds stands about half the level that it did before the market crash.
The market is up around 40%, from March 9 lows, and individual investors have shown no urgency in getting back into the markets. So why are so many investors missing out on the rebound?
If you’re among the many who are worried and fearful of getting into the markets after taking a drubbing, there are some things you can do:
1. Recognize that buying is an emotional experience, too. The saying that “buying is easy and selling is hard” is often true, but after a market collapse that led many to lose as much as half of their portfolios, buying again can be a terrifying prospect.