Why, however, when talking about stock markets in investors remains some bitter taste, especially in the mass investor?
Several are the main reasons for this ...
In the first fifteen years, young investors have witnessed two collapses in the global stock markets, which is quite unusual for such a short period.
After the "bubble of the technology bubble" in 2000, only eight years later we witnessed a global financial crisis that was comparable to that of the Great Depression of 1933.
Older generations have formed the perception of the stock market, based on the bullish market that has lasted from the mid-1970s to the late 1990s, and this largely forms the basis for their understanding of the market.
However, the younger and less inexperienced investors saw two crashes in the range of around 50% of the indices and only eight years ago, making them far more skeptical in their attitude to the markets.
And how are things for home investors?
Even worse are the associations related to the domestic stock market. Featuring only 16 years of new history, the market has grown steadily over the next three to four years to 2007, after which it has lost about 90 percent of its value.
It should be borne in mind that the market has become more popular and popular among investors around the moment and just before its peak.
Ie. the massive and inexperienced investor joined at a time close to the peak, subsequently failing to respond adequately to the sharp depreciation that occurred within just a few months. Thus he lost a major part of his investment.
How can we blame him that he will not return to the market again? And if he decides to do so, it will most likely be near the next market peak once it becomes "modern" again and everyone starts talking about three-digit growth in its investment. Unfortunately, the mass investor is doomed to be in a spiral of "everlasting losses".
So do not be like mass investors and watch Buffett's advice - "Be greedy when others are afraid."
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