So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For the pagans run after all these things, and your heavenly Father knows that you need them. But seek first his kingdom and his righteousness, and all these things will be given to you as well. Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.

28 May 2019

STOCK MARKET--Is there a proven method for profiting on investing in the stock market?

Yes! Its called buy-and-hold. The US stock market has proven time and again, that investing in it is profitable over the long haul. It has returned well over 10% annually, over the last 10 years and about 7% annually over the last 30. Even adjusted for inflation, that looks pretty profitable.

However, despite all those stats, there is no telling how profitable (if at all) it can be over the next 5 years or less. There are clear and present risks in adopting the buy and hold approach, as the returns are not linear. So, unless your time horizon (for realizing said returns) is much longer than that, simply holding on to your stock positions may not be the most ideal choice. You will need to learn how to hedge on those market risks. Portfolio diversification and periodic re-balancing of your stock allocations are some of the most common methods. Using stock options is a bit more sophisticated approach, but is fast becoming more popular.

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