Jeff, there have been ample opportunities to get out of the market since 2000. If Enron didn't make people get antsy about the market, only losing their life's savings will.
If you have an investment that's lost 35% over the past 2-years (the S&P), you would think you'd evaluate that and cut your losses. Like the casino, many people believe they will make the money back. It is the gambling mentality that traps people in the market. They believe they can make back their losses, or that the market will come back to them.
Seeing things through rose colored sunglasses hampers things.
I agree the people running the game are crooks, but chasing after easy money is not investing, it's speculation. Speculation is a very dangerous thing to get involved in.
I have personally begged a couple to get out of the market since COMP 2300 (last May). I urged them again in November (COMP 1934). I urged again in March (COMP 1947). No doing. They want to wait for it to come back. They bought in at COMP 3800. They're down 60%.
By the way, they retired early a year ago. Guess what? They're both back to work now. Guess what? Their money is still in the market.
I also have a customer who I've been telling the same thing to for the past 18-months (I was pretty dumb before that). They continued putting their employee profit sharing into tech growth funds. This guy also complains about his portfolio, but he doesn't see the forest for the trees.
People are hearing all kinds of crap on TV, but if someone picks your pocket for 35% of your cash and runs, you usually figure you're not going to see that money again. People need to think the same way about the market and protect what they have, not try to make back what they lost. |
