There is something occurring right now that concerns me… and ought to concern you, too.  So I urge you to pay close attention to this blog post…

Individual investors are moving into stocks and riskier investments

Since the financial crisis, and until very recently, individual investors (that’s you and me) largely avoided stocks.  But now, as the stock market continues on a sharp rise that is already one of the steepest in history, people begin to fear they will miss out.  According to a recent article in the Wall Street Journal¹….

Stock-market fever is one of your biggest enemies as an investor… It’s pure instinct.  We’re hard-wired to run with a stampeding herd and to seek safety in numbers.”

The article advises that you shouldn’t trust the crowd, because, “they’re usually wrong.  Time and time again, studies show the public invests at the wrong time – they get bullish and buy after shares have risen, and then panic and sell after they have fallen.”

Just as they did before the housing bubble burst and just like they did before the dot.com crash.  And just like they have done throughout history.

The article notes that, “too many TV market pundits talk like they’re on ESPN.  It gives the stock market a phony air of urgency and excitement.”  And it reminds us that, “if you’re buying, higher stock prices are bad, not good.”

Wall Street lost more than 40% of our money -TWICE – in the past decade

How can you be sure they’re not about to do it again?

[Read more…] “Market Rally? Why you shouldn’t get carried away…”