Weekend Reading: 10 Truths About the Stock Market

This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Weekend reading truths about stock market Weekend reading truths about stock market
Weekend Reading

The stock market can be a place where wealth is made, but also, where fortunes are lost. The difference between these outlooks stems from the misconceptions many investors have about the market, so here, you will find 10 truths.


Some of the most noteworthy include:

📌 The long game is undefeated: Hence, why long-term investing is where your focus should lie. As the article states, “Since 1926, there’s never been a 20-year period where the stock market didn’t generate a positive return.”

📌 You can get smoked in the short-term: Any investor knows this too well, but it’s maintaining that long-term mindset that helps you stomach the short-term blows.

📌 Don’t ever expect average: You might have heard the stock market yields, on average, 10 percent annually. However, this rarely happens in a given year, and more so applies to the long-term.

📌 Stocks offer asymmetric upside: As stated in the article, “A stock can only go down by 100 percent, but there’s no limit to how many times that value can multiply going up.”

📌 The stock market is and isn’t the economy: Stock market performance and the U.S. economy are not one and the same, but they do share ties. Simply put, “The economy reflects all of the business being conducted in the U.S., while the market reflects the performance of the biggest companies…”

Rest assured: You don’t need to understand all of the intricacies of the stock market, or investing, for that matter. A simple handful of key concepts are often what make the best investors.