Fear Factor: Taking Shocks Out of Stocks

Better Investing

What's Hot

Do This or Your iPhone Bill May SkyrocketSave

23 Upgrades Under $50 to Make Your House Look AwesomeAround The House

Trump Worth $10 Billion Less Than If He’d Simply Invested in Index FundsBusiness

11 Places in the World Where You Can Afford to Retire in StyleMore

What You Need to Know for 2017 Obamacare EnrollmentFamily

8 Things Rich People Buy That Make Them Look DumbAround The House

32 of the Highest-Paid American SpeakersMake

Amazon Prime No Longer Pledges Free 2-Day Shipping on All ItemsMore

More Caffeine Means Less Dementia for WomenFamily

9 Tips to Ensure You’ll Have Enough to RetireFamily

30 Awesome Things to Do in RetirementCollege

5 Spots Where Retirees Can Live for Less Than $40,000Real Estate

10 Ways to Reduce Your Homeowner’s Insurance RatesFamily

10 Ways to Pull Together the Down Payment for a HomeCredit & Debt

Chew on This: The Story Behind Your Hershey’s Halloween TreatsBusiness

Experts estimate that trillions of dollars of retirement and other savings have now been wiped out by the stock market meltdown that began last year... and that's got lots of investors worried that stocks aren't for them. But we explain how to take the shock out of stocks.

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.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: Taco Bell Is Handing Out Free Food for World Series Stolen Bases

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 1,717 more deals!