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LORD JESUS CHRIST SAYS

“Ask and it will be given to you; seek and you will find; knock and the door will be opened to you. For everyone who asks receives; the one who seeks finds; and to the one who knocks, the door will be opened. Matthew 7:7-8

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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