Let’s just get this right, stock markets rule! The most important building in the world is the New York Stock Exchange. Wall Street rules the world. Politicians and central bankers watch Wall Street. In other words, the one thing you can be assured of is that the dreaded stock market will continue to dominate our existence and will continue to climb over time.
The authorities have no choice but to continue playing the game. If the game ends, world Armageddon begins. Look what happened with the stock market crash of 1929; The Great Depression and 2008 saw the Great Recession!
The stock market is the heart of the financial world. Stocks are shares and shares represent business. Business rules the world and therefore the stock market rules our existence!
The Stock Market is part of our lives
When people say they want nothing to do with the stock market, they are saying they want nothing to do with business, which is like saying they want nothing to do with gravity. Everything you have was designed, manufactured, sold and delivered by business.
We all do business with business every moment of our lives.
When you go to the shops and the tills are ringing, that is the sound of the stock market. You are a product of the stock market.
The Stock Market is safe investment
Provided you know what you are doing and you invest over an appropriate time period stocks can be a great source of wealth. It is, however, important to not invest for the short-term, investing in business are long term investments. In fact, investing in the stock market for the short term is not investing, it’s called trading or speculating or gambling.
Don’t confuse gambling over the short term with investing in the stock market over the long term. Gambling or speculating is very risky, you could go on courses and get complicated software programs to help you trade or gamble in the stock market and you could make a lot of money or you could lose everything, but that is not investing.
Investing means doing your research. Research the company you are considering buying shares in, their financials and management team as well as the industry it opporates in and its competitors. Research, research!
Doing research pays off
Warren Buffet spent years before he invested in Coca-Cola, which has made him billions. When he has done his research; he invests in great businesses, with great management teams and he buys in at an attractive price. When he has made a decision based on research and principals he gives these great businesses the time to perform. That’s called investing!
The stock market is not risky if you know what you are doing; if you are a qualified and experienced professional you should be able to execute on your skills and experience without being swayed by emotion.
The stock market is not risky if you are unemotional and focus on fundamentals, it is rather unsophisticated investors who are risky. Unsophisticated investors get emotional and panic and do stupid things and then blame the stock market. Don’t blame the game, blame the players!
With a sound investment philosophy and by doing your homework every day the stock market is the number one investment in the world for long-term investors.
Where have the ultra-rich made their money? Where have Bill Gates and Warren Buffet made their billions? If you follow sound investment principles, you will be greatly rewarded over time.
People will die and the stock market will live on!