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Business Making: The Greatest Myths Of The Security Market Part 3

Myth ? 4

Shares are the insurance from inflation

Many years stockbrokers considered shares as the insurance from inflation. It is possible to agree with it and it is possible also to disagree. All depends on the point of view. Really those investments will insure against inflation that rises in price simultaneously with inflation growth – real estate, jewelry, collecting subjects etc. As to the security market inflation poses for it real threat. In the conditions of inflation growth interest rates that involves a number of negative consequences raise. On the one hand, investors which are preferring bonds with a high interest rate deprive the security market of injections of the capital. On the other hand, cost of realization of a business activity can jump up, incomes of the companies will start to fall, and the prices of shares will increase.

Therefore categorically to assert that shares serve as the insurance from inflation, at least, wrongfully. On shares it is possible to earn faster, than inflation will eat the put up money. For this purpose it is necessary to invest means in the shares possessing enough high level of growth of the income on them when the price for shares will faster grow than inflation. You will urge on as though inflation moving ahead of it.

Myth ? 5

You presume a high risk

Most likely, it is the most cruel and silly myth from all myths about the security market. All know that older persons don’t like to risk. They should be very careful as value of the future profit is very limited. They, you see don’t presume to lose their money. But after all same thing concerns also youth people.

Young men, in the majority, are forced to consider each penny. Family creation, house purchasing, capital accumulation etc. demand fixed costs. The youth behind an exception of only small quantity of people perhaps afflicted with career of successful businessmen. However the income of youth and students is rather insignificant. They in any way can not dare to risk. Besides young men have one important advantage and this is time. What sense to run risks, if it is possible to invest in the checked up and reliable companies, making profit from year to year? At growth of 10 % in a year of their investment each seven years will be doubled. By then, when it will be time to growing up posterity to go to school, this initial, reliable capital investment will increase in eight times.
When there is time, it is possible to afford patience. The patience in the market is paid with double profit. So there is always risk, but if you won?t risk you won?t find what you could get if you have done it.

It is very crucial that government, despite this recession is not abandoning to assist small businesses. And small business grants can be a true helper right now.

But, of course, you should understand that today the fight for small business grants as well as for other kinds of grants has become more fierce. This is logical – more businesses need them. So before you start your battle for the small business grants, please make sure to visit this blog for more info about grant industry.

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