Previously, I gave you the first 3 reasons why I love investing in the stock market. Let me now discuss 3 more reasons.

4.) If handled correctly, experts believe, the stock market is the best investment ever.

Studies confirm that while the stock market may have had its high and low moments, on the overall picture, no other investment can beat the stock market. Prof. Jeremy Seigel supports this with numerous case studies in the book “Stock for the Long Run”.

Prof. Seigel observed that from 1802 to 1997, a period of 195 years, although the stock market was volatile and fluctuating, it was still the leading vehicle of investment for most of the time. Even the greatest stock market crashes became mere insignificant blips in the business charts. Hypothetically, US$1 invested and re-invested in 1802 should multiply to US$7,500,000 at the end of 1997.

To give an example based on the local scene, it was published that the highest return rate of 224% ever recorded in the Philippine stock market history was in 1986 while the lowest was in 1997 when it was a negative 41%. Nonetheless, if you held on to your money for a long haul of about 20 years, the average return was still in the vicinity of 24% to 28% annually.

5.) Invest in the Stock Market and you will be forced learn.

When you invest in the stock market, you will force yourself to read business news and to see the impact of major news headlines to your investments. News will cease to be mere coffee table topics but will assume a new meaning to you as to how it may or may not affect your investments. Thus you will strive to understand financial and business terms in the news items, jargon you have never encountered before even in your wildest dreams. You get smarter as you are compelled to read and learn to expand your business knowledge. You may have slept through your business and finance subjects in college but now you can’t even blink while you try to grasp what inflation is and how it can affect your investments. You will be motivated to learn like never before.

6.) Investing in the stock market lends credence to the saying “Knowledge is Power” and makes you realize how important the internet is.

This is now the age of knowledge or the “information technology age”. In this age, truly knowledge is power. To most people, it is just another cliche but if you have ever tried trading online, you would know that nothing could be truer. Since way back in college, I had dreamed of investing in stock market. The frenzy in the stock exchange as portrayed in the movies amazed me so much that I kept on wondering what the excitement was all about. Unfortunately, I was not able to invest that early in my life. I did not have the right information nor the capability. I did not have the money, either! However, with modern technology comes the internet where information is readily available at the mere click of the mouse. One can even trade online with just your fingers doing the walking over the keyboard. Nowadays, I spend endless hours online monitoring news, investing in the stock market, banking online and a lot of other things. Very soon I am expecting to invest globally in other stock markets from all over the world – all of these in the comfort of my own home.

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