In: Finance
Has the retail stock market turned into short term investing opportunities or are their still investors in it for the long run? Not including Amazon
They are 2 main ways the earnings class is interacting with the stock market.
(Mainly we have to take at the behaviour of 20-40 years age group.)
1. People are still For long term but not mainly by investing directly. They invest for the long term mutual funds by paying a systematic investment plan (SIP). The mutual funds for the majority of investors are meant for long term investment. They also pay to save for pension & this leads to indirect long term investment in the stock market.As Pension funds also invest in the stock market.
Majority of the people are still going for the long term but not
directly. They don't generally go for the long term in the retail
stock market.
Main Answer:
2. When it comes to retail stock market investment, nowadays
investor are not patient enough to wait for such a long term, so
the majority of them go for trading. the retail stock market has
turned into short term investing opportunities. They are only very
few who use it for long term investment.
This happens because people are not financially educated enough to
do the stock-picking or they don't have enough time. If people are
financially educated enough then the majority of them will go for
long term investments but sadly that is not the case.