Why should you invest in the stock market
It is impossible to predict the movement of the stock market, but amid the unpredictability, the benefits of investing in stocks remain important. What really needs to change, is the public's perception of the stock market and the actual risks involved. With your money possibly currently sitting in a savings account, think about why stocks are a worthwhile investment and why you should also invest in the stock market.
You don’t have to spend thousands of dollars to get started. You can start by putting aside the few dollars you would normally spend on a daily latte. This is practically a painless way to put your earnings at the service of your future. Over a period of years, your earnings from stocks will pull together and grow rapidly to a fortune. Essentially stocks harness the power of compound interest without the need for additional funds.
Federal Reserve is trying to keep inflation at around 2% per annum. Think about how this could decrease the purchasing power of any money sitting in your savings account. This means that every account or investment needs to earn at least 2% to keep up with inflation. Unfortunately, even high-yield savings accounts don’t offer such high interest rates. A higher interest rate on certificates of deposit (CD) than on savings accounts can possibly keep pace with or slightly exceed target inflation rates. However, your money is tied up for the term of the CD, which can range from 30 days to 10 years. If you need to withdraw your money before the end of a CD, you will be charged an early repayment penalty, which will further reduce your income. Investing in the stock exchange removes such liquidity barriers.
Don’t put all your money in one type of investment. Investing in the stock market helps you diversify your wealth and protect further against volatility.
You don’t have to buy stocks of the next Amazon or Tesla to get a respectable return. Keep in mind that the stock market historically, as measured by the S&P 500, has seen an average annual investment return of 10%.
Regardless of what you might think, the reality is that there is no silver bullet for investing. Successful investors have no well-kept secrets up their sleeves, and there are no secret passwords or handshakes. The truth is, there are only a few differences between you and a successful investor. These are research and a solid understanding of the basics. The basics include a strategy of how to “buy low and sell high”. Here at econvestor.com, that’s exactly what we do for you!
You don’t have to be a math expert, a rich man, or Warren Buffett to invest in the stock market. Stock portfolios and wealth are founded from scratch and the requirements for an investment on the stock exchange are nowadays extremely modest.
What can we do for you
Our service features our top recommendations from the stock market. We believe that our recommendations could benefit you as they are immediate investible ideas irrespectively of whether you are an experienced investor or just a newbie!
Let us help you take control of your financial future! Try econvestor today!