196
null

4 Reasons Investors Are Scared Right Now & Shouldn’t Be

Some investors out there are scared right now. That’s not a very productive mindset for investing and managing money effectively. Yet, when you see why they are so fearful you can feel for them. 


Fortunately, there are ways to turn it around. 


Here are four reasons so many are scared, and why they don’t need to be. 


  • They Have Not Future Proofed Their Money

Many did not think far enough ahead. The ideal time to future proof your money and investment portfolio is before disaster or a big correction in the markets strikes. Like before COVID, and all of the fears of recession after that. 


Still, by intelligently diversifying now, investors can insulate themselves, their financial performance, and futures by shifting their portfolio allocation and restructuring now. 


It’s still not too late to avoid the worst of it in this rotation, but the window is closing.


  • Paying Attention To The Wrong Information

If you are simply abdicating your peace of mind and investment decisions to the media, you want to be scared. It’s their job. They make their money publishing bad news and fear. 


They also end up publishing data that is often three or four months out of date, and which has been manipulated with statistics to argue one way or the other. 


Of course, this can cut both ways. They may say it is the end of the world when it isn’t. They may not tell the whole story of how bad it can get, only for investors to end up getting hit hard. 


Don’t follow the blind that haven’t been through it before. Dig into the real, raw data. Get as close to it as you can, and the most recent data you can. 


  • They Don’t Know Their Cycles

Economies, businesses, and individual markets and assets all rotate in a cyclical nature. We have an enormous amount of historical data to show how this plays out. 


Of course, if you don’t know your cycles, then you’ll be caught by surprise and get scared. Or you won’t see the silver lining coming behind the clouds. 


This lack of understanding also happens to play right into the hands of the savvy and experienced. Those that can make the most precise and profitable acquisition and disposition moves. 


  • They Are Betting, Not Investing

If you are just betting and gambling on the next game in town, then of course there is no security or predictability in your finances. 

Contrast this with true investing, looking at the real fundamentals, and using dollar cost averaging to stay consistent.


Investment Opportunities


Find out more about investing in secured debt and real estate, go to NNG Capital Fund.


Photo by Andrea Piacquadio


Article Source: https://nngcapitalfund.com/4-reasons-investors-are-scared-right-now-shouldnt-be/

Related Articles