Investment in stocks for better returns
Stocks are considered to be long-term investments. This is, in part, because it's not unusual for stocks to drop 10% to 20% or more in value over a shorter period of time. Over a period of time, investors have the opportunity to ride out some of these highs and lows to generate a better long-term return. If we look back at stock market returns since the 1920s, individuals have never lost money investing in the S&P 500 for a 20-year time period. Even considering many of the setbacks, such as the Great Depression, Black Monday , the tech bubble, and the financial crisis, investors would have experienced gains if they had invested in the S&P 500 and held it uninterrupted for 20 years. While past results do not guarantee future returns, it does suggest to the investors that a long-term invest in stocks generally yields positive results, if given enough time. One of the inherent problems in investor behavior is the tendency to be emotional over their investment. Man...