One of the main jobs of any investment broker in Santa Rosa is to offer clear-headed financial advice to our clients. Unfortunately, this can sometimes be a challenge, because there are so many myths floating around about stocks and the stock market. The market tends to be portrayed very poorly on TV and other pop media, causing a lot of confusion among would-be investors.
So, in the interests of preventing any poor decisions based on these media myths, we wanted to quickly dispel some of the more pernicious ones.
Your Investment Broker in Santa Rosa Explains the Truth Behind These Stock Market Myths
MYTH #1 – The stock market is only for rich people
Absolutely not! In fact, one of the strengths of the American stock market is that anyone with a little extra money to invest can participate. It’s true that the more money one has available to buy stock, the more returns they’re likely to get – but that’s true of any investment opportunity. Stocks can be a safe and stable way for anyone to invest their money.
MYTH #2 – Investing in the stock market is just like gambling
A lot of people will try to turn you away from investing in stocks with this line, but it’s just not true. To a large extent, stock investment is as risky as you want it to be. There are many safe investments, companies that have shown steady returns for decades or even centuries. Also, it’s important to remember that when you buy stock, you are truly getting something for your money – a piece of that company. That’s completely unlike gambling at a poker table, where it’s “winner take all.”
MYTH #3 – Buying a stock at an all-time low is a good idea
This is situational, but there’s a rule of thumb among investors: “Never try to catch a falling knife.” It’s relatively rare for a high-value stock to tumble to a low, then manage to regain all its lost value again. Sure, it can happen – but it’s a very risky bet that an investment broker in Santa Rosa would not typically encourage.
Turn to Montgomery Taylor For Help with Your Financial Planning
From short-term investments to retirement planning, to help with your taxes, Montgomery Taylor offers robust financial services that anyone can take advantage of. Contact us today to discuss your financial needs.