American International Group Inc (AIG), Citigroup Inc. (C): 4 Mistakes Young Investors Are Making

Page 1 of 2

Ever since the celebrations at the beginning of the new millennium, investors have had to deal with turbulent markets. For young investors just getting started with managing their money and trying to make it grow, the experience of the Lost Decade of stagnant stock-market returns and the 2008 recession’s impact on the entry-level job market have combined to make it even harder for those just beginning their careers to get employed at all — let alone get a good enough job to be able to invest.

Despite those negative experiences, young investors can’t afford to make the mistakes that have become increasingly common in recent years. Let’s take a closer look at four mistakes that young investors are making and what you can do to avoid them.

Mistake 1: Being afraid of the stock market.
Since 2000, investors have seen two major bear markets, with very different but equally scary causes and consequences. Early in the decade, the bursting of the tech bubble and the impact of September 11th gave many investors their first experience with a down market after the long and mostly uninterrupted bull market of the 1980s and 1990s. Later, just as investors were starting to get their feet back under them and the market marched to new highs, the financial crisis reared its ugly head and once again sent stocks crashing.

Despite the amazing bull market that has led to major market indexes more than doubling, we’ve only recently gotten back to record highs. Moreover, skeptics point to fallen stocks American International Group Inc. (NYSE:AIG) and Citigroup Inc. (NYSE:C), whose share prices remain 80% to 95% below where they were five years ago, as evidence that even some companies that survived the crisis will never return to their former glory.

Despite these concerns, young investors have to incorporate their limited experience in the past 13 years with the bull markets of past decades to come to a synthesis. Stocks won’t always be as strong as they were in the 1980s and 1990s, but they won’t always be as weak as they’ve been more recently, either. A happy medium will provide ample positive returns to help brave young investors reach their financial goals in the long run.

Mistake 2: Not starting to invest early enough.
Young investors have one thing older investors wish they had more of: time. The sooner you start investing, the less you have to save to succeed.

It’s tempting to think that since you can’t afford to save much, it’s not worth starting at all. But every little bit does get you closer to your goals, and it’s easier than ever to put even tiny amounts of money to work in the market. Getting into the savings habit rather than waiting wilyour investing thesis is still valid, stick with it.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!