Fantastic reasons to invest in stocks

Many say that you can make a lot of money in the stock market. But apart from that, what are the other reasons why you should start investing your money in stocks? Take a lot for these reasons.

1.) Experts say that when properly managed, investing in stocks is the best investment.

Research shows that while the stock market may have had its highs and lows, in the big picture, no other investment can beat the stock market. Professor Jeremy Seigel backs this up with numerous case studies in his book, Stocking for the Long Run.

Professor Seigel observed that from 1802 to 1997, a period of 195 years, although the stock market was volatile and fluctuated, it was still the main investment vehicle for most of the time. Even the biggest stock market crashes have become mere blips on the business charts. Hypothetically, $1 invested and reinvested in 1802 should grow to $7,500,000 at the end of 1997.

Here’s an example closer to home. The highest rate of return in the history of the Philippine stock market was 224% in 1986. The lowest rate of return, however, was minus 41% in 1997. However, if you held your investments for a long period of about 20 years, the average return was still somewhere between 24% and 28% annually.

2.) You are forced to learn.

When you invest in stocks, you force yourself to read business news and see the impact of major news on your investments. The news will stop being just a coffee table topic and take on a new meaning for you in terms of how it may or may not affect your investments. As such, you will strive to understand financial and business terms in the news, jargon that you have never encountered before even in your wildest dreams. You become smarter when you are forced to read and learn to expand your business knowledge. You may have slept through business and finance in college, but now you can’t even blink as you try to understand what inflation is and how it can affect your investments. You will be motivated to learn like never before.

3.) You will understand the meaning of the phrase “Knowledge is power” and the importance of the Internet.

We are now in the age of knowledge or the age of information technology. Never has the saying “Knowledge is power” been more relevant than now. While this is just another old adage to most people, those who have tried online trading have learned what it really means. Ever since my student days, I have longed for the experience of investing in the stock market. I was fascinated by the madness in the stock exchange offices, as shown in the movies. This made me wonder what it could be about. Unfortunately for me, I was unable to invest in my early years. I lacked three important things: information, opportunities and money. But thanks to today’s technology, information is now available online at the click of a mouse. Even online trading is possible with your fingers on the keyboard. Most of the time I am online, following the news, investing in stocks, doing online banking and many other things. Soon I will be able to invest globally in various stock markets around the world. And I will do all this while sitting comfortably at home!

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