The Risks of Being Too Risk-Averse in Investing

Paul Sullivan, in this week’s Wealth Matters column, writes that the professionals who watch the markets are optimistic about investing this year. But he notes that a lot of investors haven’t forgotten their losses in the recent market collapse and are wary of taking risks.

That is why, the professionals told Paul, investors need to remember that there are also risks in being too guarded with their investments.

What is your investment strategy for the new year? Are you actively trading in the market, or are you still sitting on the sidelines? Do you have money in bond funds, which have been a relatively safe place for cash in recent years, or are you leaving it under the mattress?