How to Make Money Picking And Trading Stocks That Are Beaten Down And Undervalued Why Stocks?
The last few years have succeeded in scaring many people away from the stock market. But the fact is, stocks still represent the single best return for most investors. Historically the stock market returned 10% per year over its life. For example, a $1 investment in the stock market in 1802 compounded (reinvested all earnings) to $7.47 million by the end of 1997. I have purposely left out the gigantic explosive up years of 1998, 1999, and early 2000, as well as the subsequent down market of the next 3 years to give you a more accurate historical picture. Keep in mind though, that this time period does factor in the stock market crash of 1929 and the subsequent Great Depression. One of the first questions I hear when I relate these returns though, is what about inflation. Those of us who were in our prime earning years in the last 1970s when inflation hit double digit levels for an extended time were jaded by the experience. But it is a legitimate question. After all, governments histor
