Historic Stock Prices – What Can You Learn From The Stock Market’s History?
With the popularity of the stock market today, many people are wondering about the historic stock prices and what that signals for future investments. Heres a brief synopsis of the general trend of the market since its inception, and the method you should use to invest your money in the future.
The stock market has historically averaged a 12% overall increase each year. This is obviously very good when compared to the return youd get from putting your money in the bank or a long term savings bond.
Therefore, you can look at these historic stock prices and conclude that just throwing your money into a mutual fund is a wise long term choice. Actually, nothing could be further form the truth.
You see, there is a lot of misinformation on investing today. Since the stock market has historically averaged a 12% rate of return on investment, many people view mutual funds as good investments. This is because mutual funds spread out their holdings, and will tend to mirror the market as a whole.
Actually, this can be disaster. Many people have lost small fortunes by...