Prior to the Great Recession, most people viewed the stock market as a great way to maximize returns on their capital but with a lost decade of equity returns, many have been left skeptical. Some people now believe it is a better idea to keep their money in a savings account or Certificate of Deposit until the market “recovers”, but they’re wrong. Here’s why:

• History has shown us that, over the long run, stocks have performed strongly. The S&P 500 has actually delivered 8-10% annual returns on average over the past 100 years (source). This indicates that long-term investment in the stock market yields higher returns. As an investor, you shouldn’t be troubled by a couple years of rockiness and instead should be looking at the long term.
• As Warren Buffett says, “Be greedy when others are fearful”.You’re missing out on great opportunities by sitting on the sidelines when things get dicey. That’s often the best time to invest.