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Affluent Investor | July 27, 2017

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Are You Still Impacted By the Most Recent Market Crash?

(Photo by www.vpsi.org) (CC BY) (Resized/Cropped)

(Photo by www.vpsi.org) (CC BY) (Resized/Cropped)

According to Ben Carlson, a blogger at A Wealth of Common Sense, the 2008 Market Crash has left “a huge psychological impact on Gen Xers and Boomers with many lingering effects.”

First, investors do not want another boom-bust cycle. 

“Even with the gains we’ve enjoyed since the 2009 lows it still feels like people have never fully bought into it from the get-go. Everyone seems to be waiting for another downturn to hit.”

Bad news is still easier to believe. 

“People have a hard time believing good news and progress. Most people these days seem to assume the glass-is-half-empty.”

Fed-bashing is (more common). 

They (investors) assume that all of their mistakes in the markets have been caused exclusively by Fed policy.”

Investors are quick to believe the end of the world is fast approaching.

“For some this means learning from past mistakes and improving their decision-making process. For others it only ends up compounding their problems as they’re never able to let go of the bunker mentality.”

From my viewpoint, I have some of these same challenges but this continued caution and uncertainty seem justified. The amount of money being printed today is unprecedented. In the meantime, this doesn’t mean we should not be prudent investors.

Solomon advised us to be cautious and diversified long ago in Ecclesiastes 11:2:

“Invest in seven ventures, yes, in eight;
 you do not know what disaster may come upon the land.”

 

 

Originally posted on Crown.

Chuck Bentley is CEO of Crown, a non-profit business and personal finance policy and educational organization, and author of “The S.A.L.T. Plan. How to Prepare for an Economic Crisis of Biblical Proportions” and “Root of Riches, What if everything you think about money is wrong?”

 

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