I get this question, and half kidding joke, from people who are skeptical or fearful about how the stock market works. Gambling and long-term investing are two very different things.
First, let’s take a step back. The U.S. economy has been historically a very resilient, large, and innovative force of nature. It has survived wars, Dot-com bubbles, the 2008 financial crisis, and recently the worst pandemic in 100 years. It has been in your best interest not to bet against the U.S. economy even though capitalism isn’t always perfect. Being “long” or holding investments in U.S. stocks, over the long term, can a great way of building wealth allowing someone to eventually retire or accomplish other goals.
Betting black or red at the roulette table or playing the slot machines is very different than long-term investing. Both take risks, but gambling is more about the short-term thrill and excitement of potential(if you’re lucky) positive outcomes. I view this behavior the same as people getting in and out of the stock market trying to time the tops and bottoms. Or worse getting involved, and getting over their heads, in trading options and stocks. The broker commercials implied it’s easy so it must be right? Very few people over the long run are successful traders.
These behaviors are gambling not investing. Buy and hold isn’t sexy, but it works! Investors have so much information at their fingertips these days it actually has made things easier. Financial professionals, like myself, and financial institutions don’t have proprietary information that others can’t access. The internet, and lower commissions for transactions, have leveled the playing field for the general public. If you have the time, willingness, and ability to invest there are many resources available. Otherwise, hire a financial professional like me to invest for you and help you get through the tough times emotionally.
Leave the gambling for your next trip to Las Vegas or the horse race. 🐎🎰