Why You Make Profit From Investing
Almost everyone knows that they need to invest their money to help prepare for retirement. It’s one of the keys to getting where you want to go. The markets may (ok, they will) bounce around in the short-term, but over the long-term they have done very well for disciplined investors. But why have markets been good to investors over the long term? Why should you get those returns for simply investing your money? What’s the actual reasoning here? Well, the reason is that the market is paying you to take on risk. At root, there is a certain level of risk inherent to the financial markets that needs to be borne by someone. We can slice it up, and pass it around, and play all sorts of financial engineering games to do things as efficiently as possible, but there’s still that risk inherent to the financial markets that needs to be dealt with, no matter how clever we are. And every stock and bond out there is its own little ball of risk. If you go out and buy a share of Amazon, you’re buying all sorts of risks – and only some of them are part of those inherent, […]

Source: Retirement Researcher

Why You Make Profit From Investing

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