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| Reasons For Investing In The Stock Market - Part 2 |
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| Written by Zigfred Diaz |
| Saturday, 19 December 2009 09:46 |
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In my previous article, the first part on the advantages or the reasons why you should invest in the stock market was discussed. Three points are highlighted, mainly potential for greater returns, part ownership of the company you are investing and belonging to a special group of people. This is the second part of this two part series. Check out my blog should you wish to view the article in its entirety. 4.) It still one of the best vehicles of investment - Even if the stock market has its up and down moments, investing long term in the stock market will still give you one of the highest returns making it one of the best vehicle of investments ever. Returns in the stock market fluctuate yearly. For example, in 1986 the Philippine stock market recorded the highest return rate at 224 %. On the other hand the lowest rate of return was in 1997 at negative 41 %. However the average return (within 20 years) is still somewhere from 24 % to 28 % per year. This means that the long term investor always wins in the long run. 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.) Investing in the stock market will help you know what it means to harness the power of the internet - The progress of man is divided into several ages. We had the "stone age" the iron ages, bronze ages etc. then we moved up to the industrial age and now they say that we are in the "information technology age." In the information technology age, knowledge is power. For many of us that term is considered just an adage. But with online trading you will know what that means. Since I was in college I really wanted to know what it is like to invest in the stock market. I was just amazed when I see traders in movies, shouting buy or sell. But I did not invest back then mainly because of three reasons, lack of information, lack of capability and most of all lack of money. The advent of the internet age has certainly changed a lot of things. The information technology 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 transferring 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 similar. 7.) Helps build the nation - Investing in the stock market helps build the nation. Most stock market investors may not realize this but this is one of the most noble objective and advantage of investing in the stock market. Companies who are listed in the stock exchange intends to infuse more capital into their business in order that such capital might be further used for expansion. Business expansions would mean more people are hired for work. The government also benefits as more taxes are being paid. This further translates into more economic activity which in the long runs helps build the nation. These reasons certainly make a compelling argument as to why you should invest in the stock market. About the Author: Would you like 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 Stock market investing Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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