2006-11-16 07:08:37 · 5 answers · asked by albertt 1 in Business & Finance ➔ Investing
over time the stock market outperforms bonds and savings accounts. That is because there is more risk of not getting your investment back in the stock market. Any one stock may not outperform because it is a poorly run company.
2006-11-16 07:20:17 · answer #1 · answered by waggy_33 6 · 1⤊ 0⤋
Yes, stocks in general outperform bonds, money market, cd's etc.
The reason is that they represent shares/part of a company. So by owning them, you are in effect sharing in the profits of that company. So rather than being a loan to someone else, it is part of a business' profits.
If you need more help than was answered by these answers, here's a book on trading for beginners:
http://www.best-stock-trading-systems.com/trading_for_beginners_review.html
2006-11-16 18:18:48 · answer #2 · answered by Anonymous · 0⤊ 0⤋
one year is considered a long term investment in stocks........
check out a book called "the magic formula"..im following its strategy and its working so far.
2006-11-16 07:14:37 · answer #3 · answered by bush deathgrip 2 · 0⤊ 0⤋
read tips on investing and stocks to help you more on this site
2006-11-16 07:14:55 · answer #4 · answered by yummy _ 3 · 0⤊ 0⤋
It does because equity (ownership) beats lending (banks) all to hell in a capitalist economy run even remotely well.
2006-11-16 09:38:49 · answer #5 · answered by vegas_iwish 5 · 0⤊ 0⤋