Investing in the financial market in the United States
Investing in shares and securities has recently become more and more popular. The fact is that it is unprofitable to put the accumulated money on a deposit in a bank. This is not a popular idea and will not bring a lot of profit. Financial and non-financial assets are another case.
There is the largest number of people who invest in America. They invest in shares, real estate, and retirement savings. The percentage of such investors is 35, 25, and 22, respectively, judging by the latest statistics. In the United States, buying securities is a common practice for everyone. And it doesn’t matter if a person understands investing.
There are several advantages that make this type of investment different from others on securities and other similar assets. We will consider them below.
Why Invest in Securities?
Residents of the United States of America invest in order to:
- Manage debt. Each of us understands that it is almost impossible to buy a house, apartment, or start a business without a bank loan if we do not have a rich family or friends who can borrow money. By investing in the financial market, you can close a loan with high-interest rates with the help of brokers or daily financial analytics. At the same time, you will be able to set aside small amounts for the next month in the case, if suddenly, your shares fall in price.
- Manage your budget. Together with the financial market, you get financial stability. In other words, investing in securities you earn more than you spend and can set aside 10-15% of your monthly budget on average. The figure will depend on how much was invested and where.
- Make retirement savings. Each of us understands that the pension will not wait. Therefore, it is necessary to replenish the account regularly. And due to investments, money for retirement multiplied and increases in size.
Of all the instruments of the financial market, the most popular security is the share.
Why the share is the most popular investment tool in America
Statistics show that every second American uses financial market tools to increase capital. «Gallop» analysts conducted surveys and found that back in 2016, 52% of the US population already invested in securities. Now, this figure reaches 65%. In Europe, only 20% of the population invest, in Russia 7%. And also, according to the same statistics, it became known that every second American who invested his money in securities chooses exactly shares.
Such a market in America is well regulated by law. Therefore, students, housewives, large businessmen invest in shares. It turns out that every person who invests heals the financial market. Shares begin to spin, sell quickly, and companies take the lead in the world. When looking at novice investors, they have a long-term prospect of making a profit. Most often, they do not invest themselves but turn to brokers.
For comparison with a bank deposit. Look at the statistics. Banks give you earnings from 3 to 5% per year. It is very small and unprofitable. Investments in the financial market can bring up to 15%. Therefore, by investing in shares, you create your future.
Naturally, the financial market is not only profit but also risk. If securities are mismanaged, you can lose money. The same applies to the moment if the market crashes. But over the past 90 years, the profitability on securities has been 11.5%. This is one of the highest profitability ratios in the world. In the American market, this result is generally the highest among all types of investments. You can mitigate your risks with investment strategies. Personal brokers and financial advisors also sometimes help. But the profit will be stable and high.
Investing in shares and securities has recently become more and more popular. The fact is that it is unprofitable to put the accumulated money on a deposit in a bank. This is not a popular idea and will not bring a lot of profit. Financial and non-financial assets are another case. There is the largest…