There’s a term taught in most introductory business or economics courses, opportunity cost. A perfect example of opportunity cost could be happening to some investors right now. Many people have been expressing fear that stocks are overvalued and that a ‘crash is coming’. However, the markets have shown very little, so far, in supporting those claims. People moving their money out of the markets in preparation or fear of a crash are missing some potentially nice gains. The opportunity cost of sitting on the sidelines out of fear versus staying in the market is very real for some investors.
Here’s what I’ve been reading this morning: