Moving with guts at all times is not the smartest way when it comes to financial matters. The inherent aptitude which you possess may help you in several areas of your life, but when it comes to money making and savings, the best way to follow is counterintuitive.
One of adage portrayed in many investments books are “Buy low, Sell High”. It is one of the simplest and best advices for the investors. During the Great Recession people fled the market, jumping out of equities to the safety bonds and cash. The emotions of the people are running so high and the headlines of the newspapers, strongly regretting about contiguous financial crisis. Minds of the investors are planning to jump ship. The casual look at the history of market cycles taught the investors, that they should not have kept a huge faith and stick on to it. Investor questioned in their minds that, if they could not purchase the stocks low during the meltdown, then when can they purchase.
Many investors considered such a prolonged downfall in the market is very rare and holding the stocks is a better option since the market would rebound and it would surpass the inflation. T. Rowe Price made a post-recession study and revealed that, the investors who systematically invested in the tough bear market experienced large gains during the bullish markets after a period of three decades. The young investors enjoyed larger benefits from the decades-long time horizon. The analysis of T. Rowe Price graphed four hypothetical investors; each contributed produced great deal of investments towards the retirement account which replicated the S&P 500 Index over three decades.
They commenced their investments during 1929, 1950, 1970 and 1979 and these years witnessed a severe stock-market downturn.These four fictitious investors were hit hard initially, but they purchased the stocks at low prices. They taught that, the accumulation of these shares would produce magnificent returns during bullish markets. The three decade investment began in 1929 and concluded with a total gain around 960 percent and the investors who commenced during 1970 tasted a gain of 1753 percent. So, plan before you invest your money to reap tremendous profits and tension free life.
Article Source: http://www.articlesbase.com/investing-articles/smartest-way-to-yield-more-profit-through-investments-4663868.html
About the Author
This is Subburam Nattamai an Electronics and Communication Engineering graduate from Anna University, Chennai. Currently an MBA aspirant. Young, energetic and dynamic individual, who is a voracious reader and enjoys writing articles and publishing it on web sites. I am a free lancer and a article/content writer. Currently a ghost writer for many companies,promoting websites and providing SEO guidelines.
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