Bigger Pockets: Why the Stock Market Should NOT Scare You

Investors tend to make the biggest mistakes when they get emotional. And let’s face it… it’s easy to get emotional when the market crashes. It may seem like the world is ending. And that the end isn’t in sight.

But market history shows that bear markets and recessions tend to look like speed bumps against a long-term uptrend over time. The market always finds a way up. And investors who ignore the fear tend to come out on top.

Most investors know that markets will be volatile. But that knowledge doesn’t compensate for the stomach-churning sense while a market crash is going on. Looking at big daily drops can make investors wary, even if they know the best strategy is to measure returns in months and years.

For most investors, the simplest strategy is to buy a market index fund, and make regular, consistent contributions to it.

Individual stock picking can be fun. But it can take a considerable amount of time to play out successfully.

Every company has unique characteristics to it, and trying to understand why some companies are wildly successful and others aren’t can be wildly profitable.

Investors should know where to stick with index investing, and when to branch out into individual stock investing based on how they can handle market volatility.

To listen to the full podcast, click here.