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<p>[QUOTE=&quot;medoraman, post: 1281321, member: 26302&quot;]Very valid points concerning some dangers of the market sir. My advice, FWIW, to average investors, is to pick index funds and invest into the periodically and never change. This is about the only good thing about a 401k is the time essence, and how its easy to just let it go on autopilot. Stock Index funds is not ALL I recommend, I always recommend a balanced portfolio, but for the equity portion I like no load, low fee, indexes for most people.</p><p><br /></p><p>Small investors tend to be ill informed, and followers in markets. They like to buy more what is going up, and sell what is going down, exactly the opposite of what they should do. If you are talking about an active investor who does not know much about stocks, then you are 1000% correct. Small investors picking individual stocks frequently take outsized beatings. This is also true of all assets classes, though, so I do not think its a shortcoming of stocks only. Small investors always seem to fall prey for whatever is &quot;hot&quot;, so its a universal danger. The same is completely true with PM. I never saw another buyers in the early 90&#039;s in the coin stores where I was buying at $4 or so, but raise the price to $30 and they are beating down the doors it seems.</p><p><br /></p><p>The most successful plan I have seen for small investors is again map out a diversified portfolio, continue to build that, and ignore the news. Money can be made timing markets, buying right, etc etc, but its hard and most small investors simply do not have the background for it. </p><p><br /></p><p>BTW, the marchers on Wall Street are the same old neo communist scrubs, demanding $20 minimum wage whethere working or not, free college, free healthcare, just generally wanting a welfare state. I wouldn&#039;t consider their opinions to be indicative of the general population, especially since most of us have jobs and can&#039;t go camping for weeks in the middle of manhattan.</p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>

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