The problem with new investors
If history holds any stories, then we should be in for one of the biggest crashes the world has
ever seen.
Sir Isaac Newton who lost most of his fortune in the South Sea Bubble is quoted as saying, "I
can calculate the motions of heavenly bodies, but not the madness of people."
It is not the crash that is so bad but the emotional panic that occurs at the times of such financial disasters/opportunities.
The problem with most new investors is that they have not yet been through a real bear market ... since this current bull market started in 1974.
It is not possible to predict the market, but it is important that we be prepared for whichever
direction it decides to go.
Bull markets seem to go on forever, which causes people to become sloppy, foolish, and
complacent.
Bear markets also seem to go on forever causing people to forget that bear markets
are often the best times to become very, very rich.
That is why you want to be a qualified investor.
