| A lot of people say that you can make a lot of | | | | strive to understand financial and business terms in |
| money in the stock market. But aside from that | | | | the news items, jargon you have never encountered |
| what are the other reasons why you should start | | | | before even in your wildest dreams. You get smarter |
| investing your money in stocks? Take a lot at these | | | | as you are compelled to read and learn to expand |
| reasons. | | | | your business knowledge. You may have slept |
| 1.) Experts declare, that if managed correctly | | | | through your business and finance subjects in college |
| investing in stocks is the best investment. | | | | but now you can't even blink while you try to grasp |
| Studies confirm that while the stock market may | | | | what inflation is and how it can affect your |
| have had its high and low moments, on the overall | | | | investments. You will be motivated to learn like never |
| picture, no other investment can beat the stock | | | | before. |
| market. Prof. Jeremy Seigel supports this with | | | | 3.) You will understand the meaning of "Knowledge is |
| numerous case studies in the book "Stock for the | | | | Power" and the importance of the internet. |
| Long Run". | | | | We are now in the age of knowledge or age of |
| Prof. Seigel observed that from 1802 to 1997, a | | | | information technology. Never has the saying |
| period of 195 years, although the stock market was | | | | "Knowledge is Power" been more applicable than to |
| volatile and fluctuating, it was still the leading vehicle | | | | this age. Although to most people it is just another |
| of investment for most of the time. Even the | | | | old proverb, those who have tried online trading have |
| greatest stock market crashes became mere | | | | discovered what it truly means. Way back to my |
| insignificant blips in the business charts. Hypothetically, | | | | college days, I have yearned to experience investing |
| US$1 invested and re-invested in 1802 should multiply | | | | in the stock market. I was fascinated with the frenzy |
| to US$7,500,000 at the end of 1997. | | | | in stock exchange offices as portrayed in movies. It |
| Here's an example closer to home. The highest return | | | | made me ask what it could be all about. |
| rate in recorded history of the Philippine stock | | | | Unfortunately for me, I had not been able to invest |
| market was 224% in 1986 The lowest return rate | | | | early in life. I lacked three important things: |
| however, was negative 41% in 1997. Still, if you held | | | | information, capability and money. But thanks to |
| on to your investment for the long haul of about 20 | | | | modern technology, information is now available |
| years, the average return was still somewhere | | | | through the internet just a mouse click away. With |
| between 24% to 28% annually. | | | | your fingers on the keyboard, even online trading is |
| 2.) You are forced to learn. | | | | possible. I am online most of the time monitoring the |
| When you invest in the stocks, you will force | | | | news, investing in stocks, doing online banking and a |
| yourself to read business news and to see the | | | | host of other things. It will not be long before I am |
| impact of major news headlines to your investments. | | | | able to invest globally in different stock markets all |
| News will cease to be mere coffee table topics but | | | | over the world. And I will do all these while sitting |
| will assume a new meaning to you as to how it may | | | | comfortably at home! |
| or may not affect your investments. Thus you will | | | | |