Fear of the Stock Market

By: Financial Shopper Network

    Some people in all economies develop a fear of the stock market. Many of these individuals are frightened by seeing any losses in their statements. These individuals would prefer sticking their money in the bank and watching it grow.

    The stock market is a very different beast. Some days the market  goes up and some days it goes down. Some individual cannot deal with the rollover coaster caused by the stock market. These people are paralyzed by the thought of losing a dollar on any given day. They may be sweating over the fact that their company match is made up of company stock. Their strategy in regards to investing is simple, just follow the safest path.

    When anyone sees a loss in their statement,  they are not usually joyful. No one cheers that their tech stock is down twenty percent year to date. However many of us invest in the market for the long haul. The select few that fear the market on an ongoing basis are not "long-term investors."  They are more prone to invest their money into CDs and money market accounts.  Some of their bankers know them of a first name basis. The bank is their friend.

    There is nothing wrong with an individual who is afraid of the stock market. As long as these people have enough money to retire it is okay. The stock market is not for everyone, but you should realize that you are not going to average rate of return of 8% over the course of 40 years in the bank. If you do have a high rate of return, inflation is probably hurting us bad.