Why You Should Invest In The Stock Market - Part 2
Last time we discussed about the advantages or the reasons why you should invest in the stock market. We talked about the first three which are, potential for greater returns, part ownership of the company you are investing and belonging to a special group of people. This is the concluding part of this 2 part series. If you wish to view the entire article, check out my blog.
4.) The stock market is still the one of the best investment - While it is true that investing in the stock market has its up and down moments, in the long run investing in the stock market is still one of the best investment vehicles out there. Stock market returns fluctuate from year to year. In 1986 we have the recorded highest return rate at 224 % and negative 41 % as the lowest return rate in 1997. Yet despite the markets up and down if you hold on to your money (Holding period of about 20 years) on the long term, the average return for investing in the stock market is 24 % to 28 % per year so in short you it is not possible to incur any loss if you are a long term investor.
5.) Increases your financial knowledge and forces you to learn. - If you dozed off in your high school or college days economics class before, you might loose all your hair right now just to force yourself to try to understand what inflation means. You start to begin reading the business news regularly and try to give importance to major news headlines as this will have an impact on the behaviour of the market. You will be forced to understand words that you never understood before. You will become more smarter and wiser more than ever as are forced to keep on increasing your financial and investments knowledge.
6.) Investing in the stock market will help you know what it means to harness the power of the internet - The progress of man is divided into several ages. We had the "stone age" the iron ages, bronze ages etc. then we moved up to the industrial age and now they say that we are in the "information technology age." In the information technology age, knowledge is power. For many of us that term is considered just an adage. But with online trading you will know what that means. Since I was in college I really wanted to know what it is like to invest in the stock market. I was just amazed when I see traders in movies, shouting buy or sell. But I did not invest back then mainly because of three reasons, lack of information, lack of capability and most of all lack of money.
In today's internet driven economy, information can be accessed easily through the world wide web.Trading is made much more easier with online trading facilities. As this opportunities are presented to me, I made it a point to start investing in the stock market. Now I do all of my trading activities online such as monitoring the news, buying and selling of stocks and transferring money to my accounts. Perhaps I will someday move into global stock market trading. Despite its complications, the principles in stock market trading is still somewhat the same.
7.) Investing in the Stock Market helps build the nation -This is the most noble objective and advantage as to why you should invest in the stock market. One of the main reasons why companies want to get listed in the stock exchange is that they want to infuse more capital into their business. The reason why they want more capital is they want to expand the business. More capital means more business, more business means more jobs, more jobs means more needs of the average Filipinos are being met. More business also means more taxes for the government. In a sense when you invest money in the stock market you are actually helping create jobs and at the same time more taxes for the government. This increase in economic activity helps build the nation.
Certainly these compelling reasons make a valid argument as to why you should invest in the stock market. - 23200
4.) The stock market is still the one of the best investment - While it is true that investing in the stock market has its up and down moments, in the long run investing in the stock market is still one of the best investment vehicles out there. Stock market returns fluctuate from year to year. In 1986 we have the recorded highest return rate at 224 % and negative 41 % as the lowest return rate in 1997. Yet despite the markets up and down if you hold on to your money (Holding period of about 20 years) on the long term, the average return for investing in the stock market is 24 % to 28 % per year so in short you it is not possible to incur any loss if you are a long term investor.
5.) Increases your financial knowledge and forces you to learn. - If you dozed off in your high school or college days economics class before, you might loose all your hair right now just to force yourself to try to understand what inflation means. You start to begin reading the business news regularly and try to give importance to major news headlines as this will have an impact on the behaviour of the market. You will be forced to understand words that you never understood before. You will become more smarter and wiser more than ever as are forced to keep on increasing your financial and investments knowledge.
6.) Investing in the stock market will help you know what it means to harness the power of the internet - The progress of man is divided into several ages. We had the "stone age" the iron ages, bronze ages etc. then we moved up to the industrial age and now they say that we are in the "information technology age." In the information technology age, knowledge is power. For many of us that term is considered just an adage. But with online trading you will know what that means. Since I was in college I really wanted to know what it is like to invest in the stock market. I was just amazed when I see traders in movies, shouting buy or sell. But I did not invest back then mainly because of three reasons, lack of information, lack of capability and most of all lack of money.
In today's internet driven economy, information can be accessed easily through the world wide web.Trading is made much more easier with online trading facilities. As this opportunities are presented to me, I made it a point to start investing in the stock market. Now I do all of my trading activities online such as monitoring the news, buying and selling of stocks and transferring money to my accounts. Perhaps I will someday move into global stock market trading. Despite its complications, the principles in stock market trading is still somewhat the same.
7.) Investing in the Stock Market helps build the nation -This is the most noble objective and advantage as to why you should invest in the stock market. One of the main reasons why companies want to get listed in the stock exchange is that they want to infuse more capital into their business. The reason why they want more capital is they want to expand the business. More capital means more business, more business means more jobs, more jobs means more needs of the average Filipinos are being met. More business also means more taxes for the government. In a sense when you invest money in the stock market you are actually helping create jobs and at the same time more taxes for the government. This increase in economic activity helps build the nation.
Certainly these compelling reasons make a valid argument as to why you should invest in the stock market. - 23200
About the Author:
Would you want to know more about investment strategies ? Visit the blog of Zigfred Diaz where he blogs about several interesting topics such as investments, money management, business, making money online and Stock market investing
posted by X - Men @ 12:42 AM
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