Stalking Stocks by Zoe Freiburger
While it may be tempting to buy the newest pair of Jordan’s, or indulge in the latest iPhone, why spend your cash on items that will go out of style or become outdated when you could invest in the companies that make them instead? Investing in the stock market isn’t just for the wolves on Wall Street, anyone with some petty cash and a brain can hold shares of their favorite companies.
Saving for something that’s years away, like your wedding or retirement, may not be the most enjoyable way to spend money, but there is no better time to invest than when you’re young. The longer money is invested; the more time it has to grow in the long run.
Despite its high risk nature, and the consistent up’s and down’s in the market, stocks continue to give the most potential growth for investments. Since 1926 when the Standard’s and Poor’s 500 (S&P 500) started tracking the US market, returns and profit from the stock have grown over 10% without inflation, a percentage that only continues to increase with time, along with your cash.
Dips in the market, especially if you are investing long-term, can be easily overcome with perseverance and trust in the market’s history. The market tends to follow a pattern of consistent up’s and down’s, meaning that if your stock goes down for a period, it’s likely to rise back up in a matter of a few months or years, so long as you are willing to wait and hold on to your shares. Purchasing stocks during these downs is also essential to making the most money for your investment. Shares are sold at a lower price during market downs and subsequently a higher price during market ups. Holding on and purchasing during the downs allows you to sell your shares for more than they were previously worth during the ups.
While buying full stocks to companies like Amazon or Google may not be the most budget friendly option, given that a single share can go for thousands of dollars even during a dip, there are plenty of other cost-effective options to choose from.