Big returns numbers, and your desperation to get back to "even", lure many investors back into the market. As investors (and also as humans), we have a short-term memory about what happen to cause us to lose money. We are all certain that this time will be different. We'll be more prepared when the market falls (notice we said when). Looking back the last 10 years though, many investors have not made a dime on their accounts.
From a recent Wall Street magazine, "Many advisors assured their clients to stay the course with their current portfolios. Now they are reporting that many of them are back to 2007 asset levels and ready to take on more risk. At least one advisor says that his clients are taking on too much risk."
In the article, the advisors condoning riskier behavior where either younger in age or experience, while the more experienced advisor was cautious about the risk. After 25 + years experience in the business, we know that there our too many factors that can upset a fragile market and the costs associated to fix your account. The needs for a higher degree of safety and additional guarantees are greater than ever before.
To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)
To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)
