I never understood why adults who are generally conservative spenders are into investing in the stock market. It seems like a game to me. Even if you do your research, you have to be lucky to earn money. And, even if you make money, it can easily be lost. Is there something that I'm not getting?
2006-07-09 21:23:36 · 4 answers · asked by SQRD 2 in Business & Finance ➔ Investing
Bottom line: Over time, investing in stocks is a much better return than any bank or bond.
If you simply invested in the "SPY" (S&P 500 Index) you would have earned an average return of 8% per year for 10 years. This is significanly better than any savings/CD's over the same period.
There is "risk" in buying stocks, that risk can be managed. It's a greater risk to lose the purchasing power of your money in savings/CD's because of the lower returns & taxes.
Learn about investing. Read a couple of books. Then make an educated opinion of investing in stocks.
2006-07-10 01:34:10 · answer #1 · answered by Common Sense 7 · 0⤊ 0⤋
There's a lot you're not getting. Any kind of investment involves risk, and taking no risk in your investments is one of the riskiest things you can do, because you'll virtually guarantee that you don't make any money. If you base your retirement on purely money that you're able to save from earnings, chances are you'll retire in poverty.
Investing is necessary, and stocks have proven to be the best vehicle over time. Yes, you have to make wise decisions about which to choose, but that is true of any investment.
2006-07-10 09:17:56 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Research is very important. But you have to remember that the proper research is key. Reading the stock market can be difficult and can be very harsh sometimes. If you can recognize the signed and be active with the company's profits you can predict gains and losses. Thus making large gains! The stock market isn't for everyone and that's why they have bonds and Cd's for the non risk takers out there.
2006-07-10 04:28:35 · answer #3 · answered by dkwr14 3 · 0⤊ 0⤋
Not all stocks fluctuate as much as most people think. Certain businesses aren't as drastically affected by day to day businesses or disasters as others.
Although the quickest way to make money in the stock market is betting on those penny stocks. Most people put money into the stock market into safter businesses or mutual funds which are very reilable and usually turn out more profit than bank intrest.
2006-07-10 04:27:11 · answer #4 · answered by jetteleigh 2 · 0⤊ 0⤋