US stocks on the rise: Why now is the time to invest!
With the stock market continually making headlines, it can be hard to keep up with how investing in stocks works, and what it means for you as an investor. While many people continue to question whether now is the right time to invest in US stocks, it’s important to remember that history has shown us that investing in the stock market almost always pays off over time. In this article, we’ll give you all the information you need to determine whether or not now is the right time to invest in US stocks.
Long-Term Growth Trends Support the Market
The US market has historically shown strong long-term growth—and there are indicators that these historical trends will continue. While no one can predict stock prices, historical data shows that US companies have a lot of potential for growth over a long period of time. It’s important to look at more than just one or two factors when deciding whether or not it’s a good idea to invest in a particular asset.
History Shows Stocks Move Higher Over Time
Stocks have risen steadily since their inception, and history shows us that upward movement will continue in future. Since 1950, they’ve seen an average annual return of around 10%—which means if you invested $100 in stock indexes like S&P 500 (or even less), you’d expect to see your money grow more than 10-fold over a 60-year period.
Keeping Your Cool When Markets Get Jittery
So, how can investors prepare for such black swan events? For starters, they need to be able to keep their cool when markets get jittery. There are two important things to remember. First, in the long run, stocks have always increased in value. Second, market corrections are only temporary and are actually the best times to buy in at low prices (so it's not the time to panic!). According to Shiller’s data from the book Irrational Exuberance, over 90% of all declines in stock prices go up again within a few months.
The Importance of Assessing Risk Tolerance
You need to be honest with yourself about how much risk you can handle. Most people think they are better at assessing their tolerance for risk than they actually are. So it’s important that you approach your financial advisor armed with real numbers, not just impressions and feelings. For example, ask yourself, How would I feel if I lost 50% of my portfolio value in one year? And then follow up by asking your advisor how likely that scenario would be if you were investing in a specific asset class or investment strategy. Armed with a realistic understanding of what risks you might face and how it could impact your portfolio, only then can you understand which investments will allow you to reach your goals with less stress and more confidence.
Stocks Outperform Cash
Having money sitting in cash won’t yield much of a return, as interest rates are at historic lows. So why not put your money toward something that will grow over time? Research shows that US stocks have outperformed every other asset class over long periods of time—so if you’re looking for growth, investing in a US stock portfolio could be your best bet. Check out our new infographic below for more on why you should consider investing in US stocks today!
But You Can Invest for as low as $1!
Maestri offers $1 minimum deposits. This makes Maestri an ideal solution for investors with small budgets and limited capital. $1 may not sound like much, but it can make a big difference. Maestri can be an essential tool for long-term growth and development in a diversified portfolio of investments. While you might only have $1 to work with, your money will still grow—and compound over time!