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6 Powerful Investing Myths (You Really Don't Want to Fall For )

6 Powerful Investing Myths (You Really Don't Want to Fall For )

May 31, 2022

#1 Cash is Always Safer Than Stocks

FACT: Markets fluctuate. Since 2009, the S & P 500 has seen average gains of about 15% annually (and it's risen more than 70% of the time over the last century.) Keeping your savings in cash means growth won't necessarily keep up with inflation. Over the long term, that could reduce the value of savings, whereas stock investments have far more potential to grow, earn and work harder for you.

#2. I Need $??? Before Investing

FACT: If you want to invest or start building wealth for the future, you don't have to meet any financial threshold to make it happen. There are all sorts of opportunities and flexible options to fit different needs and goals.

#3. Investing in the Market is Like Gambling

FACT: Although investing always involves some risk, you can manage risk and dial it in, based on your own risk appetite. Gambling is a flashy, fast, zero-sum game - there's lots of action and the house usually wins. Building an investment strategy based on your goals and personal circumstances is a lot more like farming.

#4. I Don't Have Time to Invest

FACT: You don't need to carve out a bunch of time to invest and build your portfolio. Working with a financial professional means you’re getting help, guidance, and the benefit of experience and professional tools.

#5. When the Market's in Trouble It's Time to Sell

FACT: This myth is one of the costliest because panic selling can be a BIG mistake. In fact, bailing on investments and selling as soon as the market takes a downturn maybe the worst thing you can do if your long-term goals haven't changed. That's because you can lose out on the recovery - and you may wait too long to get back in the markets after you pulled out. 

#6. If I Could Pick the "Right" Stocks

FACT: Making millions on a single stock pick makes a great movie, but it doesn't have much to do with reality. You don't have to cherry-pick stocks and look for that dark horse or unicorn to build wealth. Instead put the real unicorns to work for you: time, consistency, and a solid investment strategy.

To learn more contact the professionals at Compass Wealth Management at 724-719-3288 or set up an appointment here

All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.