Fear is a risk that is borne out of insufficient knowledge. One should not feel naïve or uninformed. At the end of the day, if one does not do this to earn one’s living on a daily basis one will always feel out of place. Funnily, most people are not aware of what influences changes in stocks. Consequently, most people go on to buy mutual funds because they believe the fund manager has a better idea on stocks than they do. As such, the fund manager gets their pay even if stocks depreciate and people buy even more as they save for retirement. People do buy mutual funds as well and although they have suffered, a downward trend this year there is nothing people can do about it. As the worst mortgage / real estate crisis of this era unfolds, people are making profits by investing in real estate. People plan to hang onto their money though risk management is all about diversification.
Robert who authored the book ‘Rich Dad Poor Dad’ and ‘Why We Want You To Be Rich’, written along with Donald Trump observed and rightly so, that there is a less chance of risks when people do not have so much control over things. As pertinent to people’s investments in real estate, people control all factors such that on buying mutual funds people do have to instruct the fund manager on what stocks he or she should buy or sell.