Publicly Traded Assets
Why Publicly Traded Assets
Understanding the Business Cycle
Stocks have historically yielded a generous annualized return over the long term, with the S&P 500 Index providing an annualized return of 18% as of January 31, 2022. Investing in stocks can be done easily through a broker, financial planner, or online, and investors can purchase shares in just a few minutes. Retail brokers typically offer commission-free trades, low account minimums, and the ability to buy fractional shares.
The Benefits of Investing in Stocks
Another benefit of investing in precious metals is that they are not subject to government influence, making them a more independent investment choice. Historically, precious metals like gold and silver have also proven to be stable during times of economic crisis, making them a reliable investment during turbulent times.
Attractive Features of the Stock Market
Investors are drawn to the stock market for its potential to buy low, sell high, and invest in fast-growing companies. Day traders and buy-and-hold investors hope to outperform the market, while those who prefer regular cash streams can purchase stocks with dividends. Additionally, the stock market is highly liquid, allowing investors to turn their shares into cash quickly and with low transaction costs.
Take Advantage of Growing Economy
As the economy grows, corporate earnings rise as well. This is because economic growth creates jobs and income, boosting consumer demand and driving more revenues into companies' cash registers. The business cycle is made up of four phases: expansion, peak, contraction, and trough.
Stay Ahead of Inflation
Stocks have yielded a generous annualized return over the long term. For example, as of January 31, 2022, the 10-year annualized return for the S&P 500 Index was 18%.
Easy to Buy
You can easily buy shares of companies through a broker, financial planner, or online. Once you have an account set up, you can buy stocks in just a few minutes. If you're a small business owner, you may even be able to invest in stocks through your business.
Don't Need Much to Start
You can buy and sell stocks without paying any commissions at most retail brokers. Some brokers also don't have any account minimums. If a stock is too expensive, you can buy fractional shares of it if your broker allows.
Multiple Ways to Invest
Investors aim to buy low, sell high, and invest in fast-growing companies. This is attractive to day traders and buy-and-hold investors, who hope to outperform the market. Some investors prefer regular cash streams and purchase stocks with dividends
Liquidity
The stock market is liquid, meaning you can turn your shares into cash quickly and with low transaction costs.