2016 stock market investors important lessons

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According to MarketWatch report, over the last year, investors learned the biggest lesson, should not the darkest moments in the stock market, decided to leave. South Texas Fund management company President Jim Kee summed up the heart.

The company manages about $3 billion in assets.

2016 years he described as the biggest lesson is: If only because earlier scored the worst year since the great depression, or wisely decided to wait for the United States presidential election, so in February to sell shares and cash, the wealth of the people now may be reduced by 24%. "This is because since February, United States stock market has surged more than 24%," he said in a report released this week. "In this year of rising, the investor can only be negative.

At Thursday's close, S&P 500 2262.03 points, while the February lows 1810.10, up 25%.

Indeed, this type of "holding hold" proposal, only when the stock market continues to perform well, is correct.

If the stock market continues down trend at the beginning, followed by even worse, now fund managers may be totally different. But long after all showed strong year, Jim in his report, has also continued to criticize the bears.

He quoted analyst Robert Shiller research recently reported that investors always tend to overestimate the possibility of a stock market crash.

Many individual and institutional investors said the next six months, the probability of collapse of the stock market day is 19%, but the actual probability of the trend of stock market collapse is less than 1%. Jim wrote: "such a tendency towards pessimism, probably because the news media and journalists are too emphasized the negative consequences caused. 

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