The goal of investing is to have your assets appreciate at a higher rate than your money would sitting in a savings account. Many consider a “good” investment to be around 7% per year, based on the S&P 500’s historical average return, adjusted for inflation.
Long-term investments tend to carry less volatility than short-term ones. Even stocks that may have volatile movements on a daily basis can produce stable returns in the long run. Additionally, you earn a tax advantage for holding stocks for at least one full year.
Day trading, when people buy and sell stocks within a day’s volatility or short period of time, can be extremely lucrative. When a stock rapidly gains momentum, the price can rise in a short amount of time.
They say one of the best investments you can make is in yourself. If you have a knack for business and some money to get started, creating your own business has endless potential for high returns. It doesn’t have to be a huge business.
Between the years 2000 and 2018, blue-chip art outperformed the S&P 500. Blue-chip art by artists such as Picasso or Claude Money carries exceptionally high price tags and the vast majority of people can’t afford these pieces.