Silicon Casino happened in 1994. Type your answer here… Over the long haul (and yes, it’s occasionally a very long haul), stocks are the only asset class that has consistently beaten inflation. The reason is obvious: over time, good companies grow and make money; they can pass those profits on to their shareholders in the form of dividends and provide additional gains from higher stock prices. “It’s just a big gambling game,” some say. “The whole thing is rigged.” There may be just enough truth in those statements to convince a few people who haven’t taken the time to study it further.
One of the more cynical reasons investors give for avoiding the stock market is to liken it to a casino. Here’s why they’re wrong: As a result, they invest in bonds (which can be much riskier than they presume, with far little chance for outsize rewards) or they stay in cash. The results for their bottom lines are often disastrous. 3) Do your homework. Study the balance sheet and annual report of the company that’s caught your interest. Nearly every company has an occasional setback.
Read the latest news stories on the company and make sure you are clear on why you expect the company’s earnings to grow. If you don’t understand the story, don’t buy it. At the very least, know how much you’re paying for the company’s earnings, how much debt it has, and what its cash flow picture is like. Don’t panic over a little bit of negative news from time to time. But, after you’ve bought the stock, continue to monitor the news carefully. Hardly anyone has gotten rich by investing in bonds, and no one does it by putting their money in the bank.
Knowing these three key issues, how can the individual investor avoid buying in at the wrong time or being victimized by deceptive practices? 3) It is the only game in town. Outside of investing in commodities futures or trading currency, which are best left to the pros, the stock market is the only widely accessible way to grow your nest egg enough to beat inflation. Look for red flags in the financial news, such as the beginning of the recent housing slump or the international credit crisis.
Even poor market timers make money if they buy good companies. Of course, severe drops can happen in times of low interest rates as well. Don’t let fear and uncertainty keep you from participating. Remember that the market goes up more than it goes down. 5) Take advantage of periodic panics to load up on shares you really like long term. It isn’t easy to do, but following this advice will vastly improve your bottom line.
6) Remember that it’s not different this time. Whenever the market starts doing crazy things, people will say that the situation is unprecedented. If you beloved this post and you would like to acquire more data regarding snow44 คาสิโนออนไลน์ kindly check out our own web-page. They will justify outrageous P/E’s by talking about a new paradigm. Or, they’ll bail out of stocks at the worst possible time by insisting that this time, the end of the world is really at hand.