Fear Factor: Taking Shocks Out of Stocks

By on

Whenever you see stock prices collapse, you see something else mushroom: fear of investing in stocks.

“I have fear of how long this will last. And how much it will affect me and my loved ones and other people.”
-Federico Alanis, Small Investor

But fear should never be a part of any intelligent investment strategy. And if it’s keeping you on the sidelines, you need to know how to take the shocks out of stocks.

Single best way? Don’t put all your eggs in such a wild basket. Diversify.

“Have your money in stocks, and cash and CDs and treasuries. So when the markets drop 40%… you won’t be hit as much as everybody else because your assets are properly spread.”
-Anthony Altobelli, E*Trade

And then there’s the biggest source of fear: the unknown. Educate yourself.

“The only way you can take the emotion out is if you truly educate yourself. If you understand the investments that you’re in, and if they’re tied to your goals, needs and objectives, if you’ve mapped all that out, then there’s no need to worry.”
-Anthony Altobelli, E*Trade

And finally, remember why you’re in stocks to begin with: over time, they pay more.

“The only asset class that really outpaces that inflation, or taxes or more importantly helps you save for retirement, or put your kids through college is the stock market.”
-Anthony Altobelli, E*Trade

Bottom line? You should never find yourself in panic mode no matter what the stock market’s doing. And if you do find yourself panicking, then probably you either need to decrease the money you have invested, or increase your knowledge.

Sign up for our free newsletter

Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash. It doesn't cost a dime, so why wait? Click here to sign up now.

Check out our hottest deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,068 more deals!

Comments & discussion

We welcome your opinions, but let’s keep it civil. Like many businesses, we reserve the right to refuse service to anyone. In our case, that means those who communicate by name-calling, racism, using words designed to hurt others or generally acting like an uninformed bully. Also, comments that include links to email addresses or commercial websites typically aren't posted. This isn't a place to advertise your business.

  • Maureen Marshall

    Anthony, great advice. Mimi

  • Maureen Marshall

    Anthony, great advice. Mimi