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Why The Stock Market Isn't a Casino!

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작성자 Warner
댓글 0건 조회 98회 작성일 24-08-19 19:05

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Individual investors have a huge advantage over mutual fund managers and institutional investors, in that they can invest in small and even MicroCap companies the big kahunas couldn't touch without violating SEC or corporate rules. Here's why they're wrong: The results for their bottom lines are often disastrous. 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.

Any casino means ANY casino, including Indian casinos. Even poor market timers make money if they buy good companies. Don't let fear and uncertainty keep you from participating. Look for red flags in the financial news, such as the beginning of the recent housing slump or the international credit crisis. Remember that the market goes up more than it goes down. Of course, severe drops can happen in times of low interest rates as well. 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.

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. They will justify outrageous P/E's by talking about a new paradigm. 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.

Over the long haul (and yes, it's occasionally a very long haul), stocks are the only asset class that has consistently beaten inflation. Imagine, too, that all the games are like black jack rather than slot machines, in that you can use what you know (you're an experienced player) and the current circumstances (you've been watching the cards) to improve your odds. 1) Yes, there's an element of gambling, but- Imagine a casino where the long-term odds are rigged in your favor instead of against you.

Now you have a more reasonable approximation of the stock market. Those who invest carefully over the course of many years are likely to end up as very happy campers...notice, we didn't say gamblers. Here's a simple conclusion If you've been avoiding the market because you believe it's a casino, think twice. At the same time, money markets and bonds start paying out more attractive rates. 2) When inflation and interest rates are soaring, the market is often due for a drop...be alert.

High interest rates force companies that depend on borrowing to spend more of their cash to grow revenues. If you cherished this article and you also would like to get more info with regards to เครดิตฟรี png generously visit the web-site. If investors can earn 8% to 12% in a money market fund, they're less likely to take the risk of investing in the market. "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. "It's just a big gambling game," some say.

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