The advantages of investing in the stock market

There are five benefits of stock investing.

Research shows that, over time, it's the best way to gain the highest return at the lowest risk. Own companies located in the United States, Europe, Japan and emerging markets.

That allows you to own hundreds of stocks that are selected by the mutual fund manager. That means you are less vulnerable to any individual stock's performance. How much of each should you have?

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Updated April 13, Stock ownership takes advantage of a growing economy. As the economy grows, so do corporate earnings. That's because economic growth creates income.

Major Benefits Of Investing In The Stock Market

The fatter paycheck boosts consumer demand, which drives more revenues into companies' cash registers. That's better than the average annual inflation rate of 3. It does mean you must have a longer time horizon.

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That way, you can buy and hold even if the value temporarily drops. What Is the Boom and Bust Cycle? Get Daily Money Tips to Your Inbox Email Address Sign Up.

Glossary of Stock Market Terms & Definitions - wunesajoc.web.fc2.com

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