Nearly every day I hear folks tell me about why they think they should not invest in the stock market right now. Some of them seem to be relatively reasonable fears about investing, some not so much. I do declare! I have some stories I would tell you about all the excuses I have heard….all the way back to the stories my Mamaw used to tell about the Great Depression of 1934 (that stuff would curl your toes!), but that would take more than a month of Sunday’s to recount. So, I will give you the most popular excuses I have heard over the last 13 years and see if you can relate to any of them.
- 1999: The Y2k bug is about to crash all the world’s computers. “We will have no accounting of our money at the bank or on our brokerage statements!”
- 2000: The dot-com bubble burst. “The market is crashing. It will never come back!”
- 2001: Terrorist attacks destroyed both World Trade Centers and the hit the Pentagon. “The nuclear bomb is next. We need to have all of our money under a mattress at home!”
- 2002: Corporate Accounting Issues. “Enron, WorldCom, Global Crossing have all betrayed investors therefore all companies are corrupt and we should not invest!”
- 2005: Hurricane Katrina wiped out New Orleans! “This is the beginning of the end!”
- 2008: Sub-prime mortgage crisis/ Global Financial Crisis. “ The banks are collapsing. There will be no more economy!” (Don’t ever watch MSNBC in a crisis! That’s another story all together!)
- 2009: Worst recession since the Great Depression. “The market won’t come back for 20 years!”
- 2011: Europe’s sovereign debt crisis, U.S. Debt Ceiling. “ No one in the world is going to have any money! We are all going to hell in a handbasket!”
- 2012: Presidential Election pending November 2012. “The U.S. deficit is so high that America can’t regain it’s financial strength!”
- 2012: The Mayan Calendar ends December 21, 2012. “The earth’s gravitational poles are going to reverse and we will all fall out into space. Therefore, there is no need for retirement planning.” (This one takes the cake!)
Here is ONE good reason why you SHOULD invest in the markets: $23,288,100. This is the amount, a mere $10,000 invested in the markets in January of 1934 would have been worth on December 31, 2010, based on the performance of the S&P 500 index.
Emotionally we are always thinking of reasons not to invest in the stock market. Clearly these headlines and the fears that they create devise volatility in the stock market. The truth is the markets always climb a wall of worry. If you stick your head in the sand to avoid the fears and worry, the markets will pass you by.
It matters where you are invested. It matters who you choose to help you. Find someone who can help you invest your money and manage the volatility. Find someone who can help you deal with your fears through common sense. For more information go to www.waterstonewealth.com or call 918-272-1120. Melanie Hasty-Grant, Experienced Licensed Professional Counselor and Managing Principal at Waterstone Private Wealth Management.
*Securities and Advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Indexes are unmanaged and investors are not able to invest directly into any index.
*The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments may be appropriate for you, consult your financial advisor prior to investing.
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