Consequently, for the average investor, investing is no longer fun. Still, once we get more momentum behind us with higher levels than now, the average retail investor may begin to gingerly step back in. Meanwhile, potential investors should try not to stick to a herd mentality or ignore potential opportunities.
For instance, Ritholtz points to the shifts in attitude toward stock picking as correlation among equities rise. Consequently, as it becomes more difficult to pick out a winner, investors have looked to ETFs that offer broad exposure that helps provide diversification opportunities, with the added advantages of lower costs, fees, taxes and turnovers.
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Max Chen contributed to this article.