The only market that guarantees success
Gold, a raw material, has risen the most as it has been evaluated as a safe asset for investment after COVID-19.
7%, three times the average annual growth rate.
Among commodities, gold remains an attractive and safe-haven asset for the
foreseeable future, but considering its rapid rise in 2020, the next five to ten years
will likely perform much lower than real estate or stocks.
Some argue for a second or third surge in the value of gold, but given the world's gold
stocks, that's never going to happen.
In real estate and stocks, if the amount of investment is large, I think it doesn't matter
which one of the two investments you consider over the next 10 years.
However, if you are just starting out or starting with a relatively small investment,
you should start with stocks.
There are two reasons to start investing in stocks.
One is that, as explained so far, 12% growth is guaranteed every year based on the
s&p 500. However, a change in stocks does not mean a rapid change in the
average growth rate. If you grow 12% per year like this, your principal will be doubled
in 6 years.
If you invest like this for 24 years, your principal will increase from 100 million won to
1.6 billion won.
Another important reason is that this is the best way to invest for small investments.
In fact, investors who invest a small amount in stocks can lower their risk and increase
the probability of success by buying stocks just like putting in a monthly savings account.
The best way for investors to hedge market risk is to invest in the best
markets.
The U.S. Treasury Department has provided markets with astronomical dollar liquidity
since COVID-19.
However, the value of the dollar has risen or has not changed.
US stocks also hit all-time highs, with the S&P 500 and Nasdaq Fueled by dollar liquidity supply, it fully recovered after 40 days of crash and continued
to rebound.
At this time, however, a war was waged in emerging markets to secure dollars by
selling emerging market stocks and bonds.
If emerging countries tried to expand liquidity by increasing their money supply like
the US, the reality is that an economic crisis like Venezuela will inevitably occur.
Even in normal economic conditions, the best market is the United States, and in an
economic crisis, the best market is only the United States.
Invest in the best companies in the best markets.
'Economy' 카테고리의 다른 글
Structure of an exchange-traded fund (0) | 2021.10.31 |
---|---|
The secret to the highest price in US market history (0) | 2021.10.31 |
3 ways to make money (0) | 2021.10.30 |
Money invested in places that can generate high returns will increase with time as time goes by (0) | 2021.10.30 |
money and time, dispersion and concentration (0) | 2021.10.30 |