Wednesday, August 8, 2012

The Small Investor’s Fear of the Stock Market

Extremely fast computers have recently had glitches in the electronic handling of the stock market. The media’s handling of the problem has scared small investors even more than they have the pros, who now make up between 80% to 85% of the market.

As a result the small investor has been leaving the market. But small, average investors should not be in the market anyway. That is, where they buy and sell individual securities. I have written extensively on the subject.

Non-professional investors  have always been better off with low-cost, indexed mutual funds and ETFs, which adequately handle the fast computer markets. (See the Earl J. Weinreb NewsHole® comments.)

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