Gambling VS Stock Market Investing
I just recently started investing in the stock market. After careful study, I figured that it's the best way to prepare for retirement. But as I look at my portfolio on my online stock broker account, all I see is RED. My portfolio is reporting a 15% loss, and that's a good thing in my opinion. That just means that stock prices are cheap right now, and it's the best time for me to buy more stocks.
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| From https://simple.wikipedia.org/wiki/Gambling |
Why Investing in the Stock Market Isn’t Like Gambling
In Time.Com's
article, here's what they have to say:
In the long run, the advantage is with the buy-and-hold investor, not the house.
With recent events in the US Stock Market, many would be investors might wonder if it's still a good idea to invest in stocks:
- Dow Jones industrial average plunged 358 points, losing 2.1% of its value in a single day
- China’s slowing economy
- Federal Reserve could soon begin raising interest rates
This news shouldn't deter would-be investors from investing though.
If you’re someone who thinks investing in stocks is akin to gambling, name the casino where the player wins the vast majority of the time. “Since 1947, the S&P 500’s price return was up in 72% of calendar years,” S&P Capital IQ equity strategist Sam Stovall recently noted. “Add in dividends reinvested and that batting average jumped to 80%.”
In other words, in most years, you’re more likely to see gains by December 31st than losses.
Yes, the stock market may seem volatile, and it is, and investing in the stock market is not without risk, but in the long run the long-term investor wins.
Now that's something we all need to think about. What do you think? Feel free to comment below. Before that, watch this video:
