Previously, I gave you the first 3 reasons why I love investing in the stock market. Let me now discuss 3 more reasons.
4.) If handled correctly, experts believe, the stock market is the best investment ever.
Studies prove that although the stock market may have its ups and downs, the stock market on the whole is still the best investment vehicle. Prof . Jeremy Seigel cited a number of case studies supporting this in the book "Stock for the Long Run".
Prof. Seigel explains that for 195 years, from 1802 to 1997, despite the volatility and fluctuations in the stock market, stocks maintained its lead over all others as the primary investment vehicle most of the time. It made the greatest market stock crashes to appear only as insignificant blips in the charts. Theoretically, US$1 invested and re-invested in stocks in 1802 should balloon to US$7,500,000.00 by year end of 1997!
To give an example based on the local scene, it was published that the highest return rate of 224% ever recorded in the Philippine stock market history was in 1986 while the lowest was in 1997 when it was a negative 41%. Nonetheless, if you held on to your money for a long haul of about 20 years, the average return was still in the vicinity of 24% to 28% annually.
5.) As a Stock Market investor you will be forced to learn the ropes.
As an investor in the stock market, you have no choice but to read business news and try to see beyond mere headlines because they may have an impact on your investments. From mere gossip that feeds coffee table discussions, news has assumed a special importance because you now have to interpret the news in the context of your business investments. You take extra effort to understand business and financial terminology which you never even dreamed of before. You get smarter and you push yourself to keep on reading and learning to expand your knowledge in business. Maybe you slept through your economics or business class in college, well this time you will be wide-eyed and losing sleep trying to comprehend what inflation is and how it can impact your investments. Stock market investing will make a very enthusiastic learner out of you.
6.) Investing in the stock market teaches the meaning of "Knowledge is Power" and the importance of the internet.
This is now the age of knowledge or the "information technology age". In this age, truly knowledge is power. To most people, it is just another cliche but if you have ever tried trading online, you would know that nothing could be truer. Since way back in college, I had dreamed of investing in stock market. The frenzy in the stock exchange as portrayed in the movies amazed me so much that I kept on wondering what the excitement was all about. Unfortunately, I was not able to invest that early in my life. I did not have the right information nor the capability. I did not have the money, either! However, with modern technology comes the internet where information is readily available at the mere click of the mouse. One can even trade online with just your fingers doing the walking over the keyboard. Nowadays, I spend endless hours online monitoring news, investing in the stock market, banking online and a lot of other things. Very soon I am expecting to invest globally in other stock markets from all over the world - all of these in the comfort of my own home. - 31970
4.) If handled correctly, experts believe, the stock market is the best investment ever.
Studies prove that although the stock market may have its ups and downs, the stock market on the whole is still the best investment vehicle. Prof . Jeremy Seigel cited a number of case studies supporting this in the book "Stock for the Long Run".
Prof. Seigel explains that for 195 years, from 1802 to 1997, despite the volatility and fluctuations in the stock market, stocks maintained its lead over all others as the primary investment vehicle most of the time. It made the greatest market stock crashes to appear only as insignificant blips in the charts. Theoretically, US$1 invested and re-invested in stocks in 1802 should balloon to US$7,500,000.00 by year end of 1997!
To give an example based on the local scene, it was published that the highest return rate of 224% ever recorded in the Philippine stock market history was in 1986 while the lowest was in 1997 when it was a negative 41%. Nonetheless, if you held on to your money for a long haul of about 20 years, the average return was still in the vicinity of 24% to 28% annually.
5.) As a Stock Market investor you will be forced to learn the ropes.
As an investor in the stock market, you have no choice but to read business news and try to see beyond mere headlines because they may have an impact on your investments. From mere gossip that feeds coffee table discussions, news has assumed a special importance because you now have to interpret the news in the context of your business investments. You take extra effort to understand business and financial terminology which you never even dreamed of before. You get smarter and you push yourself to keep on reading and learning to expand your knowledge in business. Maybe you slept through your economics or business class in college, well this time you will be wide-eyed and losing sleep trying to comprehend what inflation is and how it can impact your investments. Stock market investing will make a very enthusiastic learner out of you.
6.) Investing in the stock market teaches the meaning of "Knowledge is Power" and the importance of the internet.
This is now the age of knowledge or the "information technology age". In this age, truly knowledge is power. To most people, it is just another cliche but if you have ever tried trading online, you would know that nothing could be truer. Since way back in college, I had dreamed of investing in stock market. The frenzy in the stock exchange as portrayed in the movies amazed me so much that I kept on wondering what the excitement was all about. Unfortunately, I was not able to invest that early in my life. I did not have the right information nor the capability. I did not have the money, either! However, with modern technology comes the internet where information is readily available at the mere click of the mouse. One can even trade online with just your fingers doing the walking over the keyboard. Nowadays, I spend endless hours online monitoring news, investing in the stock market, banking online and a lot of other things. Very soon I am expecting to invest globally in other stock markets from all over the world - all of these in the comfort of my own home. - 31970
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