FEAR is a 4-Letter Word
A little over a year ago the TSX plummeted to around 11,200 and more than a few people thought their retirement dreams were over. At the time, it appeared that anyone following a risk-free strategy of market aversion and a pile of cash earning 1% just had the last laugh.
There is no doubt that stocks go down, sometimes dramatically, and that can be a deal breaker for potential investors. Watching your hard-earned cash being eroded by a fickle, sometimes irrational stock market is not a very appealing option and it may be keeping you on the sidelines.
Overcoming this fear of loss is a big hump to get over, especially for stock market newbies. You will have to justify the risk of getting into the market in your own mind, but here is some food for thought to help you with that decision.