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.) Investing in the Stock Market forces you to become financially literate, more aware of your environment and inspires you to learn. - When you invest in the stock market you are forced to read the business news and place significant meaning on major news headlines. News to you does not only become something to be discussed in the coffee shop but something that has an impact since you know it will affect how the market will behave. You will be compelled to understand terms that you did not even dream of understanding. You will become twice smarter than you were as you will keep on learning and reading in order to expand your knowledge. If you slept through your economics class before, your eyes will be wide open when you try to figure out what inflation means. You will be inspired to learn.
6.) Helps you more to become internet savvy. - It has been said that the development of mankind is divided into several ages. First we had the "stone age", then came the iron age and then the bronze ages etc. Afterwards we moved up to the industrial age. Currently we are said to be in the "information technology age." In this age, knowledge is power. This is not just considered as an adage. Rather this is the essence of the information age. Engaging in online trading will surely help you understand what this means. During the time that I was in college I wanted to invest in the stock market. The reason for my curiosity was because I always see in the movies how the traders are shouting buy or sell. Howver I did not invest during that time because of three reasons. First I lack the information. Secondly, I do not have the capability and thirdly I do not have the money to invest.
The advent of the internet age has certainly changed a lot of things. The information tehcnology is powered by the internet and information on anything is accessible via the world wide web. This has also the changed the way stock market trading is done. Because of this I am now able to do everything online such as monitoring the business news, buying and selling shares of stocks and transfering money to and from my accounts. A future development would be to trade stocks globally. Although this might prove to be a much more complicated area of study nevertheless the principles of stock trading are similair.
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.
For sure these reasons certainly make a convincing argument as to why you should invest in the stock market. - 15224
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.) Investing in the Stock Market forces you to become financially literate, more aware of your environment and inspires you to learn. - When you invest in the stock market you are forced to read the business news and place significant meaning on major news headlines. News to you does not only become something to be discussed in the coffee shop but something that has an impact since you know it will affect how the market will behave. You will be compelled to understand terms that you did not even dream of understanding. You will become twice smarter than you were as you will keep on learning and reading in order to expand your knowledge. If you slept through your economics class before, your eyes will be wide open when you try to figure out what inflation means. You will be inspired to learn.
6.) Helps you more to become internet savvy. - It has been said that the development of mankind is divided into several ages. First we had the "stone age", then came the iron age and then the bronze ages etc. Afterwards we moved up to the industrial age. Currently we are said to be in the "information technology age." In this age, knowledge is power. This is not just considered as an adage. Rather this is the essence of the information age. Engaging in online trading will surely help you understand what this means. During the time that I was in college I wanted to invest in the stock market. The reason for my curiosity was because I always see in the movies how the traders are shouting buy or sell. Howver I did not invest during that time because of three reasons. First I lack the information. Secondly, I do not have the capability and thirdly I do not have the money to invest.
The advent of the internet age has certainly changed a lot of things. The information tehcnology is powered by the internet and information on anything is accessible via the world wide web. This has also the changed the way stock market trading is done. Because of this I am now able to do everything online such as monitoring the business news, buying and selling shares of stocks and transfering money to and from my accounts. A future development would be to trade stocks globally. Although this might prove to be a much more complicated area of study nevertheless the principles of stock trading are similair.
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.
For sure these reasons certainly make a convincing argument as to why you should invest in the stock market. - 15224
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 How to invest in the Philippine stock market
