Why invest in the stock market and dollar cost average
For me, investing in the stock market is the best game in town!
The S&P index returns start in 1926. Since 1926, which is the last 94 years, the S&P500 returns have been positive 69 times out of those years i.e 73% of the time. This includes the Great depression, the World Wars and the Great Financial crisis! Think about that….
Not only has the market been up 73% of the times, the up years are significantly more positive 21% (on average) than down years -13% (on average).
The chart below sums it up:
Sadly most investors are never able to realise these gains as they get fearful as stocks go own and sell at the bottom OR get fearful of missing out as stocks go up and buy at the top.
The purpose of this post is to help an average investor overcome these fears and what’d better than letting the numbers speak for themselves!
AA capital mantra: invest in the best, not just buy and hold but dollar cost average, and do nothing else unless the trend or thesis changes! I hope you enjoyed this post!