Use your desktop stock ticker and go for a long-term strategy
How to make investments in 2009 if you want a reasonable return on your money? The answer is: Reckon beyond one year – and invest in shares. The yield on a single year can vary extremely, which we just have witnessed, but during several years’ time there is a very excellent chance of a decent return on equities.
Historical records from the U.S. shows that the stock index S & P 500 on average, delivered a return of 11.5 percent a year (including dividends. But the index can deliver extreme fluctuations on a yearly basis, which is why desktop stock tickers force not be the best tool when you go for a long term investment strategy.
Historically, there are a 60 percent chance that income on a stock fluctuates linking minus 6 and plus 31 percent in one year, statistics shows from the U.S.. This also means that there is a relatively high probability that the income are more extreme – in either direction.
There is no golden method to predict when the extremes occur. Hence the best advice to try to make qualified assessments prior to investment and operating long-term if the strategy is to seek a stable and reasonable return.
Fluctuations is narrow over longer periods, shows historical data for S & P 500 index. Thus, the typical annual fluctuation in a 10-year period of linking 6.6 and 16.5 per cent. in return. While the annual fluctuations in income over a 20-year period is typically linking 7.8 and 14.7 per cent.
It should be emphasized that there are obviously periods of 10 and 20 years which fall further than the above figures. But the point is, based on historical data from S & P 500, that with a 10 – or 20-year investment horizon in shares, there is a excellent probability of a excellent and stable income. So thinking beyond 2009 is a excellent strategy.
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