The stock market’s average return is a cool 10% annually — better than you can find in a bank account or bonds. So why do so many people fail to earn that 10%, despite investing in the stock market? That’s because many don't stay invested for the long term.
The key to making money in stocks is remaining in the stock market. The length of “time in the market” is the best predictor of your total performance. Unfortunately, investors often move in and out of the stock market at the worst possible times, missing out on that annual return.
To make money investing in stocks, stay invested!
More time equals more opportunity for your investments to go up. The best companies tend to increase their profits over time, and investors reward these greater earnings with a higher stock price. That higher price translates into a return for investors who own the stock.
No one can predict which days those are going to be, however, the longer you’re in, the closer you’ll get to that historical average annual return of 10%.
I am an Independent Financial and Mortgage Adviser and have worked in Financial Services for over 12 years. During my career I gained experience in assisting both individual and corporate clients.…
