Wednesday, January 2, 2008

The Stock Market - A Beginner's Guide

The stock market is a creature in and of itself. At times it makes sense and at other times, no one can explain why it acts the way it does. What is clear is that, over the long run, the stock market will climb and climb faster than almost any other traditional investment. With that said, there are also moments (that sometimes last years) when the value of the stock market gets out of whack with the underlying companies and with the economy. I’ll try to explain my views below.

How the stock market works.
How stocks are valued.
Why the stock market is a good investment (in the long term).
Why the stock market gets out of whack with reality.
Recommended ways to invest in the stock market.

No comments: