"The No. 1 reason many investors may choose to avoid stocks is because they get emotional about their investments, says John Thompson"
John is right. Many investors can’t bear to watch their account rise and fall. Even when they know their account might not keep up with inflation, they still choose to avoid stocks. It isn’t necessarily a bad decision. If an investor decides that stability is more valuable than higher potential returns, that’s their choice. www.riskalyze.com has a great tool for investors to measure their risk tolerance and match it with an appropriate portfolio.
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Ben Mavy of CA 5:15PM July 28, 2011