Stocks are just one of the many possible ways to invest your money. You can invest in bonds, rare coins, mutual funds, savings accounts and more.
So why choose stocks? Knowing that investing in stocks is risky, why do people do it?
The main reason people choose to invest in stocks is that they provide investors with the highest potential returns. In the long term, this investment will perform better. Unfortunately, there is also a chance that the value of stocks can drop in the short term, and sometimes can remain low for a certain period.
In the past, the U.S Stock Market crashed in 2008, because of the financial crisis. The 2008 financial crisis was the worst economic disaster since the Great Depression of 1929. Now, it is being said that the U.S. Stocks suffered more during Winter 2018 than it did during the 2008 financial crisis.
Major U.S indexes fell sharply after early October. The S&P 500 index, the market’s main benchmark, finished the year with a loss of 6.2 percent. The Dow Jones Industrial Average declined 5.6 percent. The Nasdaq composite slid 3.9 percent. The last time the index crashed like this was a decade ago.
“This has really been a challenging year for investors,” said Jeff Kravetz, regional investment strategist at U.S. Bank Wealth Management. “This was really the year that market volatility returned with a vengeance.”
Technology companies, a big driver of the market’s gains before things deteriorated in October, ended the year with a 1.6 percent loss. Three of the five so-called “FAANG” stocks — Facebook, Amazon, Apple, Netflix and Google parent Alphabet — ended 2018 lower. However, Amazon rose 28.4 percent, while Netflix jumped 39.4 percent.
Energy companies suffered the most, plunging 20.5 percent for the year, as the price of U.S. crude oil tumbled around 40 percent from a four-year peak of $76 a barrel in October.
It is important when investing in stocks to avoid the herd mentality, take informed decisions, invest in businesses you understand, and to create a generic plan.
Investing in stocks can be risky, but stocks aren’t’ the only place you can make investments, you could invest into your own company by upgrading your current EAM or CMMS system, to help your company with ROI. This way you make smart choices to invest in the future.
NRX AssetHub provides asset-intensive companies with a powerful staging tool to manage, edit, build, manipulate, and visualize CMMS data. If you would like to find out more about how we can help you plan for the future, contact us and be sure to check out our brochure!
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