With the shock and horror of the global financial meltdown still fresh in our minds in may seem like an absurd statement to say that stocks is the best investment. For most people stocks are risky and the idea of investing in the stock market conjured up images of life savings being wiped out. The media just loves to report on the doom and gloom of stocks but in reality it is one of the safest and most stable investments you can make - if you do it correctly.
Over the last 25 years the stock market has out performed virtually every other investment. Yes, it goes through phases but in the end it is an investment vehicle that you simply cannot ignore if you are serious about building wealth. Lets quickly look at the 3 main reasons why you need to invest in shares.
1. Inexpensive investment
Investing in mutual funds, real estate or even in businesses can be very expensive. So many people are involved in different stages of the investment that you end up paying a small fortune in fees. With stocks it can cost you as little as $3.50 per trade. That's it. No hidden fees to worry about.
2. Opportunity and potential
Regardless of what the markets are doing there is huge opportunity in stocks. Whether its a bull market or a bear market - you can profit. Stocks is where the rich invest. You can build significant wealth with stocks and gain returns that you won't be able to see on any other investment. With the world economy basically working as one there is potential and opportunity all over the world and you can tap into all of it.
3. Speed
The stocks market is fast. Its one of the few places where investors can make millions in a mater of hours. What is particularly great about it is the fact that you can get in and get out really quickly. Suppose you invest in real estate and the market starts going down, how long will it take you to get out? It can take months. Not with shares. You can get out immediately and limit your losses to an absolute minimum.
Author Resource:
Looking for the best day trading tips? See my blog and read more about the top day trading strategies ...