Should Stockholders Sit This One Out?
Jul 15th, 2009 | By Charles L. Stanley CFP® ChFC® AIF® | Category: Investing
- Ken French
The answer depends on why stockholders want to leave the market. During the financial crisis, some investors discovered that their tolerance for risk is lower than they thought, so it might make sense for them to permanently reduce their exposure to equities. Investors who wish to avoid the price impact of the recession, however, are probably too late. Today’s stock prices already reflect the anticipated effects of the slowdown, as well as any effects the recession has on expected future returns.
View the video of Professor Ken French of Dartmouth as he responds to this question. (4min 12sec)
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“Investor Education for Main Street America”
“Investor Education for Main Street America”
"Investor Education for Main Street America"
