Although the stock market has had one if its worst starts of the New Year in many years, there are still reasons for the investor in the United States and many others not to panic.
The economy in America is doing well and, in the long run, staying in the stock market does offer a great return on investment, CNN Money has stressed.
May 2015 saw an all-time high in the stock market in the United States, and since then has only dropped about 10%. A ‘bear market’ would typically see a drop of 20%.
In addition, the economy is growing at a rate of 2-5%, and businesses are hiring, with the addition more than 2.3 million jobs last year. Americans are still buying goods and services, which is the main driver of the economy. This means that now is a good time for people to be looking into the top franchise opportunities as domestic demand in the United States is expected to stay healthy, says the chief investment officer at Atlantic Trust, David Donabedian.
In addition, there is a payoff to staying the market. According to S&P Capital IQ analyst Howard Silverblatt, those who have invested in stocks have made money over every 15-year period since World War II. Investors typically more than double their money over many spans of 15 years.
A similar analysis run by Fidelity Investments showed that since 1926, those who have invested 85% in stocks and 15% in bonds averaged 9.6% a year in returns.For the latest updates, business tips & franchise news, follow us on...