Why Invest in Stocks? Look at the Facts

One persuasive study contends that common stocks will make money for you in most years.

1-year periods

This study, done by the brokerage firm Smith Barney, looked at the 35 one-year periods between 1960 and 1995.

The study computed total return, which adds capital gains and dividends.

Over that span, stocks (as represented by the Standard & Poor's 500 index) performed unsatisfactorily in only 8 of those 35 years.

In other words, you would have been better off in money-market funds during those 8 years.

Common stocks would ahve been more successful in 27 of those 35 years.


(Comment: You can expect to have 1 down year for every 5 years of your investing.)


Read also:
Why Invest in Stocks?
Why Invest in Stocks? Look at the Facts
Why Invest in Stocks? Investing for the Long Term
Why Invest in Stocks? Some Profitable Comparisons
Why Invest in Stocks? Why Doesn't Everyone Buy Common Stocks?
Why Invest in Stocks? An Example in Practice