Investing in equity markets involves risks. There are many types of risks and one of those is the risk of the unknown. Ideally investors would like to have a perfect world where there are no crises or unknowns so they can invest without having to deal with them. To put it another way, there are always reasons to not invest in the stock market. There are always one crisis or another that investors face. For instance, some of he risks that investors face include the ongoing crisis in the middle east, Ukraine-Russia war, etc.
I came the below graphic that shows 95 different reasons that investors had to invest in stocks since 1928. Over the decades there have been many crises from Cuban missile crisis to Vietnam war to the recent covid-19. Through all these crises stocks have gone up slowly higher as shown in the second chart below.
Click to enlarge
Source: 95 Reasons Why People Did NOT Invest in the Stock Market, Orion Portfolio Solutions
The key takeaway is that at any given time there will always be a reason not to invest in stocks. The trick is to ignore those noises and invest as per one’s risk tolerance and long-term goals.
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