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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!