Do you fear another stock market crash, such as the ones that occurred in 1929, 1987, and during 2008 financial crisis? According to an article by CNNMoney’s Matt Egan, Some millennials fear the stock market because the financial crisis is “all they know.” People are saving cash, and they’re scared to dive in because history may repeat itself. Young people have the advantage of time on their side, and that’s a good reason to start investing despite the high cost of today’s stocks.
Get on the Bull Market
CircleBlack’s chief investment officer, Adam Freedman warns that the market has been on a bull run for the last six years, but eventually stocks will fall. A bull market is a time during which the price of securities, including stocks, are on the rise. It’s a time of economic growth, and it’s a good time as any to sell.
If you’re looking to buy, take the long position. As the name suggests, when you take the long position you hold onto a stock until its price rises. Exchange-Traded Funds (EFTs) and Calls are also profitable during a bull market. EFTs are cheap in terms of transaction costs and operating expenses, and they’re relatively low-risk if you know what you’re doing. A call option gives you the right to purchase stocks for an agreed-upon price until a specified date, even if the stock price rises.
According to Adam Freedman, CircleBlack’s chief investment officer, no one should be scared when it comes to investing because even “a worst-case scenario isn’t that dire.” Do you hear that millennials? Cast aside your doubts, and make your money work for you.
Follow the Leader
Throughout history, those who’ve amassed great wealth buying and selling stocks have relied on the mentorship of many seasoned financial advisors. So, the more investment advice you can monitor, the better off you’ll be. Are there any financial advisors or financial news writers you admire? If so, subscribe to their email newsletters and pay attention to the advice they give. Take everything they say with a grain of salt, but use it to inspire some research.
Don’t solely rely on your broker or account manager to make the best choices for you. Although you’re paying for the service, it’s important to note that not everyone can be trusted. Monitor the decision making skills of these people, and constantly be learning about your investments and the direction they’re heading.
Among the most important ways to receive up to date information on stock prices and competitive price fluctuations is by keeping up with investing news from a reputable news source like Sleek Money. Financial news and analysis websites offer the most up to date investing news, including non-partial looks at the rise and fall of competitive stocks. Remember, it’s good to know the price of the competition, as well as the day to day rise and fall of the stocks you own.
Time is On Your Side
Millennials have seen a lot that has fueled their fear of the stock market. This includes the popping of both the real estate and Dotcom bubbles, the early 2000s Nasdaq crash, and the 2008 financial crisis. They’ve been conditioned to fear Wall Street, banks, and real estate transactions. Unfortunately, by not investing these same millennials are holding themselves back from a comfortable and rich retirement. No one can predict when a stock market fall will occur, but you certainly can predict a poor retirement when there’s no investing involved.