Ask Matt: Can investing be less scary?

Q: Can investing be less scary?

A: Investors scored $16 trillion in wealth since the bull market started seven years ago. But making that money hasn’t been easy.

Pullbacks and corrections routinely test the patience of investors and can make it a scary experience. The most recent pain investors had to deal with on the way to $16 trillion was a 15% drop from its high to its intraday low on Feb. 11, 2016. Even now, roughly 200 companies in the Standard & Poor’s 500 are down 20% or more from their highs since 2015.

Investors might be tempted to skip investing thinking it’s just too painful. But there are sound strategies that can help investors enjoy the gains, with less pain. Diversification is an overused strategy, but it works. By owning pieces of hundreds of stocks, you can boost the odds that you own some of the stocks that have rallied most - not just the ones still stuck in a bear market.  Being patient helps, too. Short-term moves in the market are unpredictable. But investors who stay invested for years can avoid the temptation to panic sell. Above all, having an appropriate portfolio is critical. Few investors should be 100% exposed to stocks. Adding in bonds and an emergency fund help you keep your head so you can get your piece of the $16 trillion.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.