Every post I read says to invest in a low cost spy index fund as it rises, on average, 10% a year.
How can an economy continuously grow nonstop with no top in sight?
Is it simply because the money supply gets pumped? Because the government throws money at any chance of a recession? ( such as bailing out all bank accounts past 250k at SVB bank?) Because of tax incentives of throwing our wages into the markets?
In: Economics
not all stocks continuously appreciate. some go to zero. but the amount of shares of any one stock is generally limited. and it’s rare for a company to issue more. so as with all things that are limited, their value goes up as demand goes up, and demand goes up because population goes up. so in an economic system where population continues to grow, anything that is limited in availability will have it’s value go up.
The market reflects the value pumped into it. The more money people invest, the more value there is in the market, and so the more valuable your share. As long as we don’t stop, there is no end in sight, but the moment people start to seriously collectively doubt the market it crashes.
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