Why Invest?

Why Invest?

Viraaj Hedge, Author

Investing is undoubtedly the best way to build lasting wealth. If you want to share in the economic growth of the economy, you have to take a stake in it. 

Oftentimes, people are turned off to the idea of the stock market due to risk. However, not investing over your lifetime can carry just as much of a risk. 

Take a look at this chart. It’s the performance of the S&P 500, or an index of the 500 largest companies in the U.S. stock market, since its inception. The orange bars are downturns, where you would lose money. 

Notice how the downturns are much shorter than the upside? The longest recession here is from 2000-2003.

If you stayed invested in the market for at least 20 years during any period on this timeline, you would have never lost money. In fact, the S&P 500 has had an average annual return of 10.5% since 1957. 

So, don’t be closed to the idea of investing your hard-earned money in the stock market. Over time, you’re sure to net some impressive returns. 

Investing Club meets every other Monday right after school in room 349! Come to learn all about investing and participate in the stock market contest!