NEW YORK (
) -- Since the beginning of the financial crisis in 2007, many individual investors have lost faith in the stock market and in Wall Street. And who can blame them.
The fraud, malfeasance, and plain boorish behavior on the part of Wall Street institutions aside, there's high unemployment and underemployment, higher gas prices, and the endless patter of how bad our economy is doing.
Worse, none of this seems to square with rising corporate earnings and a rising stock market. Many individual investors' daily experience in a slow-growth economy tells them in their gut something is off.
Sadly, that gut feeling has caused many investors to stay on the sidelines and miss a significant market rally, not just over the past year, but over the past three and a half years since the market bottomed in March 2009.
As an investment adviser and portfolio manager I understand these trepidations. But I have also learned from experience that second-guessing the market and letting your emotions rule your investment strategy almost never works out.
So if you are one of the disenfranchised investors sitting on the sidelines, here are some step to take to get back in the ball game:
1. Many investment advisory firms, including ours, offer free portfolio reviews. Take advantage of them, there should be no cost and no obligation to you.
offers free investment tools, as well as some very low-cost tools. Many tools that are free now were proprietary just a few years ago, and individual investors couldn't gain access to them very easily. Now they can.
3. Don't get rushed or pressured into any decisions. Investing is a long-term proposition. And guess what? There are no opportunities here today that will be gone tomorrow.
4. Stick with investing in industries and businesses you know and are comfortable with. This is the Warren Buffett way. Buffett, who knows nothing about technology, missed several tech booms in the market over the last 30 years. Still, he seems to be doing fine.