When i first started investing, one of the things that i had always heard about the stock market was, yes, it was volatile. But if you look at the long term returns of the market and measure over the appropriate time period, the returns are actually pretty darned consistent. If you buy and hold the s n p 500 for 20 years, you have made money in real terms 100 % of the time. Said differently, there's never been a 20 year period in us where you lost money if you bought and held it for 20 years.
#369: To answer these questions, we need a deep, tree-trunk understanding – a core, fundamental understanding – of how the stock market operates.
What, exactly, IS a stock – and how are stocks valued? What’s the difference between the Dow Jones, the S&P 500, and the Nasdaq? Why is the market a voting machine in the short-term, but a weighing machine in the long-term?
Brian Feroldi, the author of “Why Does the Stock Market Go Up?,” joins us for a Stocks 101 explainer episode.
If you’d like a deeper understanding of the world of stocks, you’ll enjoy this explainer episode.
And if you have a friend/spouse/coworker who’s said, “I need to learn more about investing,” share this episode with them.
Enjoy!
For more information, visit the show notes at https://affordanything.com/episode369
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