Tough question: if you were injured in a car crash later today, would you refuse to enter an automobile ever again?
The thought might cross your mind, but most likely, you’d get behind the wheel again at some point. Though potentially dangerous, driving has too many benefits to give up.
And so does stock investing – not to mention there’s no risk of physical harm. Yet many Monmouth County, New Jersey investors pulled out after the 2008 stock market crash and have no intention of re-entering the market.
It’s sensible, even commendable, to prevent yourself from making the same investing mistakes twice. But the biggest mistake you can make is not re-entering the market after the 2008 stock market crash – and here’s why.
3 Reasons to Re-Enter the Stock Market in 2015
(1) You’ll likely avoid losing money to fixed-income investments.
If you jumped ship after the 2008 stock market crash, you’ve probably put your savings somewhere else – and I’m guessing it’s not under your mattress. Perhaps you’ve invested in bonds?
You might feel more secure with your savings in fixed-income investments. But here’s the rub: the 60/40 investing rule no longer applies. Inflation could actually cause you to lose money with bonds! As a rising-income investment, stocks help you grow your money while staying ahead of inflation.
(2) You’ll likely become a stronger investor.
One of the hardest skills for Monmouth County, New Jersey investors to master is staying in the stock market when the going gets tough. Fluctuations occur all the time, yet market crashes can feel like another beast entirely.
By learning to think of the 2008 stock market crash as simply a more severe market fluctuation, you can learn to stay the course and keep your money in this high-potential, rising-income investment.
(3) You’ll likely save more money for retirement.
Stock investors who have remained in the market since 2008 have enjoyed amazing returns. How? The stock market has bounced back. The economy is growing. More and more great companies are available to invest in.
My best advice for earning money through stocks comes straight from Warren Buffet: “Be fearful when others are greedy, and be greedy when others are fearful.”
How ValueAligned® Partners Can Help
My company ValueAligned® Partners helps investors in Middletown, New Jersey; Red Bank, New Jersey; elsewhere in Monmouth County, New Jersey, and throughout the U.S. invest in stocks of great companies to help them achieve the “number” they need for retirement.
Are you on track to retire comfortably – and when you want to? Are you investing in stock of great companies?
Get your retirement savings in gear today – contact me at firstname.lastname@example.org or 732-800-2375. And sign up for my email list to receive helpful emails with even more stock investing strategies and advice.
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