10 Reasons Every American Adult Should Invest in the Stock Market
Investing can be daunting for many reasons. Stocks, index funds, and exchange-traded funds (ETFs) go down all the time, and the market has been extremely volatile, especially since the beginning of the pandemic in 2020. Furthermore, most people are investing money they will need in the future, and nobody can predict the future. That said, 62% of Americans reported owning a stock in 2025, according to a Gallup poll. Here are 10 reasons every American adult should invest in the stock market.
1. You can save for retirement
The main reason most retail investors buy stocks, index funds, or ETFs is because they want to start saving for retirement. I don't need to tell anyone that life is expensive when you consider the cost of paying a mortgage or rent, food, transportation, and clothing, among many other expenses. These expenses can eat up a large portion of your paycheck, which is why people need to think about ways to grow their wealth over time. Investing allows people to do this while they work and sleep.
2. It doesn't have to be overly risky
Most investors have likely read stories about people investing in meme stocks like GameStop back in 2020 or some small cryptocurrency that no one has ever heard of. Rarely, someone does strike it big, but often, people end up losing their money on these high-risk trades. That roller coaster ride certainly isn't for everyone, and rightfully so, because many people need every last dollar they can save and can't afford to make overly risky bets. Luckily, investing can be quite boring if you invest in an index fund or ETF that buys a basket of diverse stocks set up to generate steady returns for patient investors that stay invested for years if not decades.
3. The S&P 500 has a good track record
Many investors with a long-term horizon invest in the broader benchmark S&P 500 index. According to data from Berkshire Hathaway, the S&P 500 has generated compound annual gains of 10.4%, including dividends, between 1965 and 2024, for an overall gain of 39,054%. That means $1 invested in 1965 would be worth $390.54 now. While the S&P 500 can be volatile on a short-term basis, the longer one stays invested, the more likely they are to make money. This is generally because long-term investors aren't trying to time the market, so they ride out generally short-term downturns and profit from recoveries.
^SPX data by YCharts
4. You can remove the concentration from the S&P 500
Now, investors may be concerned that the S&P 500 is too heavily concentrated by a group of stocks called the " Magnificent Seven,"+ meaning diversification in the broader benchmark index is less than it used to be. This is true. A group of large companies specializing in tech and artificial intelligence have taken the market by storm. Stocks like Nvidia and Apple now have market caps well over $1 trillion, a feat that used to be unthinkable. For investors who want to avoid this concentration, there are ways to buy an equal-weighted S&P 500 fund that removes the weighting of each stock.
5. The power of compounding is real
Investing requires patience, but if you trust the process, you'll realize that you can accumulate more wealth than you may have ever thought possible. This is due to the power of compounding. For instance, let's say you're just starting your career and don't have a lot of spare cash to invest but manage to scrape together $500. If you invested that money in the S&P 500, assume long-term historical returns of 10.4%, and add just $100 to your portfolio a year for 30 years, that initial $500 will grow into over $27,000. All you have to do is wait patiently. Also, as your career advances, you will likely have more disposable cash to invest, which will significantly enhance your returns.
6. You lose purchasing power by letting money sit idle
Now, a lot of risk-averse people may simply care too much about their money to trust the market, and I can certainly understand this sentiment. Unfortunately, keeping money in a checking account that doesn't earn anything will actually lose you money. This is because of inflation, in which consumer prices generally rise over time. Just think about how much prices have risen from before the pandemic in 2020 to now. If you kept your money in a checking account, its value stayed the same, but the price of pretty much everything else rose, leading to a loss of purchasing power.
7. There are often tax advantages
Many people are investing through an individual retirement account (IRA) or a 401(k) through an employer. In these cases, the U.S. tax code actually allows people to deduct a certain amount of contributions from the income they earn that will be taxed, leading to a lower tax bill. The limits in 2025 for an IRA are $7,000 per year for those under 50 and up to $23,500 for a 401(k). It can definitely make a difference.
8. You can find the strategy that's right for you
There's more than one way to invest. Some people buy large, very safe blue chip stocks; some buy stocks for their dividends; and some are more aggressive and make risky bets, hoping that one big win will make up for all the other losses, similar to a venture capitalist. The point is that you can invest in different strategies, sectors, regions, etc. Speaking to a financial advisor can be helpful because they can assess your current financial situation and your risk tolerance to develop a good investment strategy for you.
9. Investing reinforces smart spending habits
When most people have money, they want to spend it. This tempts all of us to make purchases that we may want but don't necessarily need. By putting a certain amount of money each year into a retirement account or portfolio, people are removing some of these temptations and reinforcing smart spending habits. As I mentioned earlier, each dollar invested can go a long way due to the power of compounding, so each dollar we don't invest subtracts from your future wealth.
10. You're going to need more money as you get older
It would be wonderful if everyone had financial freedom all the time, but that just isn't realistic. However, most people need more money as they get older because they have more responsibilities, whether it's starting a family, buying a house, or dealing with higher medical bills. If you invest younger when you typically have less responsibility, you'll be happy you have an investment portfolio that you can use later on if needed or that you aren't stressing about retirement. More than a few disciplined and patient investors have achieved financial freedom much earlier than they likely ever thought possible by starting early.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 994%* — a market-crushing outperformance compared to 172% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
See the stocks »
*Stock Advisor returns as of June 9, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
31 minutes ago
- Globe and Mail
MicroStrategy Stock Trades 32% Below 52-Week High: Buy, Sell or Hold?
MicroStrategy MSTR, doing business as 'Strategy,' shares closed at $369.70 on Friday, 32% below the 52-week high of $543 it hit on Nov. 21, 2024. Strategy shares have appreciated 27.6% year to date (YTD), while the Zacks Computer - Software industry and Zacks Computer and Technology sector have returned 10.4% and 0.9%, respectively. Strategy is the world's largest bitcoin treasury company, holding 592,100 bitcoins as of June 15, 2025. In early June, Strategy acquired 10,100 bitcoins for $1.05 billion. MARA Holdings MARA, Riot Platform RIOT and Tesla TSLA are other well-known companies that hold bitcoins in their respective balance sheets. As of March 31, MARA Holdings and Riot Platforms had 47,531 and 19,223 bitcoins, respectively, while Tesla had 11,509 bitcoins at the end of the first quarter of 2025. Strategy shares have outperformed MARA Holdings, Riot Platform and Tesla, shares of which have dropped 14.6%, 6.4% and 20.3%, YTD. MSTR Stock's Performance MSTR stock is currently trading above the 200-day moving average, indicating a bullish trend. MSTR Stock Trades Above 200-Day SMA MSTR Benefits From Growing Bitcoin Holding Strategy benefits from the Trump administration's announcement of the establishment of a strategic bitcoin reserve. Bitcoin, the most popular cryptocurrency, has been soaring due to increasing acceptance as a non-sovereign asset, as well as higher institutional and corporate adoption. However, bitcoin's volatility is a headwind for MSTR. Bitcoin is now trading above $101K, much lower than the $111K it registered in May. MSTR benefits from increasing bitcoin yield, 13.7% year to date (as of April 28, 2025), keeping the company on track to reach full year target of 15%, which is now raised to 25% and bitcoin dollar gain target to $15 billion (up from initial target of $10 billion). Bitcoin gains in dollar terms were $4.1 billion in the first quarter of 2025 and $5.8 billion as of April 28, 2025. The company's disciplined approach to capital raising through preferred equity offerings — Strike (8% convertible preferred is trading with an effective yield of roughly 9%) and Strife (10% fixed coupon perpetual preferred) — is a key catalyst. As of April 28, 2025, MSTR raised $6.6 billion through equity offerings and $3.4 billion through fixed income ($2 billion from convertible notes, $0.7 billion each through Strike and Strife). Strategy has issued $20.9 billion in equities and $6.4 billion in fixed income securities as part of its 21/21 plan since Oct. 30, 2024. The company has $14.6 million remaining under fixed income securities and $0.1 million under equities as part of the existing plan. Strategy currently plans to raise $42 billion through equity issuance and $42 billion through fixed income securities by the end of 2027. Under the current plan, the company has $21.1 billion in equity and $35.6 billion in fixed income securities remaining to be issued. Growing Subscription Revenues Aid MSTR Prospects Strategy is benefiting from growing software subscription revenues that surged 62% year over year to $37.1 million and accounted for 33% of first-quarter 2025 total revenues. Subscription billings grew 38% year over year to $24.5 million. The company benefits from continuing cloud demand with its flagship Strategy One that powers some of the largest analytics deployments in the world. Strategy One supports varied industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. Strategy is leveraging generative AI to automate and accelerate the deployment of AI-enabled applications across enterprises. Strategy's rich partner base that includes the likes of Amazon Web Services, Microsoft, STACKIT, and Google is a growth driver. Earnings Estimates Revision Trend Steady for MSTR For second-quarter 2025, the Zacks Consensus Estimate for MSTR's loss has been steady at 12 cents per share over the past 30 days. The company reported a loss of 76 cents in the year-ago quarter. For 2025, the Zacks Consensus Estimate for MSTR's loss has been steady at $15.73 per share over the past week. The company reported a loss of $6.72 per share in 2024. Here's Why MSTR Stock is a Hold Now Strategy shares are overvalued, as suggested by the Value Score of F. In terms of Price/Book, Strategy is trading at 3.0X compared with MARA's 1.35X and Riot Platforms' 1.16X, suggesting a premium valuation. MSTR Vs. MARA Valuation MSTR Vs. RIOT Valuation Image Source: Zacks Investment Research Strategy benefits from its growing bitcoin holdings and increasing subscription revenues. However, challenging macroeconomic conditions and uncertainty about tariffs increase volatility in bitcoin trading. Stretched valuation is a concern. Strategy currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report MicroStrategy Incorporated (MSTR): Free Stock Analysis Report Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report Riot Platforms, Inc. (RIOT): Free Stock Analysis Report
CTV News
37 minutes ago
- CTV News
Support for solar energy and offshore wind falls among Democrats and independents, AP-NORC poll says
Wind turbines stretch across the horizon at dusk at the Spearville Wind Farm, Sept. 29, 2024, near Spearville, Kan. (AP Photo/Charlie Riedel, File) Americans' support for green energy tax credits and renewable energies like wind and solar power has decreased in recent years, according to a new poll, driven by a softening in support from Democrats and independents. The poll from The Associated Press-NORC Center for Public Affairs Research finds that U.S. adults' support for tax credits for electric vehicles and solar panels has weakened, as well as their enthusiasm for offshore wind farm expansion. While Democrats remain the strongest supporters of these initiatives, the poll reveals signs of growing cynicism within their ranks. The poll results coincide with sweeping changes President Donald Trump's Republican administration is making to regulations related to energy and climate change, including slashing the federal workforce in these departments. And although Democrats and independents have weakened their support for some green energy initiatives, there has not been an increase in support for Trump's energy policies. The poll found only about four in 10 U.S. adults, including only one in 10 Democrats, about two in 10 independents and three-quarters of Republicans, approve of the way Trump is handling climate change, which largely tracks with his overall approval rating. Democrats and independents drive decline in support for renewable energy credits About six in 10 Democrats, 58 per cent, favour tax credits for purchasing an electric vehicle, down from about seven in 10 in 2022. Among independents, support declined from 49 per cent in 2022 to 28 per cent. Only one-quarter of Republicans supported this policy in 2022, and that hasn't changed measurably. 'As far as the pollution goes ... the vehicles nowadays put out very little emissions to the air,' said JD Johnson, a 62-year-old Democrat from Meadowview, Virginia, who somewhat opposes tax credits to purchase an electric vehicle. That's partly because he sees the electric vehicle manufacturing process as energy intensive and believes gasoline-powered vehicles have made improvements with the pollutants they emit. The decline in favoring solar panel tax credits was across the board rather than being concentrated among Democrats. 'For solar panels, in all honesty, I don't think they're that efficient yet,' said Glenn Savage, 78, a left-leaning independent from Rock Hill, South Carolina. 'I'd rather see them pour money into research and try to get the solar panels more efficient before they start giving tax breaks to the public. I may be wrong on that, but that's just my thought.' Scientists say transitioning to renewable energies and ditching fossil fuels that release planet-warming emissions are essential to protect the planet. Billions of dollars in project grants for clean technologies awarded during President Joe Biden's Democratic administration have been canceled by the Trump administration, and the offshore wind sector has been stunted by Trump's executive order that paused approvals, permits and loans for wind energy projects. Fewer than half of U.S. adults, 44 per cent, now say that offshore wind farms should be expanded in the U.S., down from 59 per cent in 2022. About half favor expanding solar panel farms, while about two-thirds were in support in 2022. When people are concerned about the economy and their personal finances, environmental issues are sometimes prioritized less, said Talbot Andrews, an assistant professor in the department of government at Cornell University who was not involved in the poll. 'I think it makes people anxious to think about increased taxes or increased spending on environmental issues when the cost of eggs are going through the roof,' Andrews said. Low support for Trump's efforts to expand offshore drilling and coal mining Trump has championed the expansion of offshore oil drilling, as well as domestic coal production. Despite a decline in support for expanded renewable energies, the new poll shows that only about one-third of U.S. adults think offshore drilling for oil and natural gas should be expanded in the U.S., and only about one-quarter say this about coal mining. In both cases, Republicans are much more likely than Democrats to support expanding these energy sources. Trump has sought to open up national monuments for oil drilling, but more U.S. adults oppose than support auctioning off more public space for oil drilling. Only about one-quarter of U.S. adults favor this, while 4 in 10 are opposed. Republicans are much more likely than independents or Democrats to be in support. Bipartisan support for consumer rebates and home appliance ratings The Energy Star program that certifies appliances, such as dishwashers and refrigerators, as energy efficient recently appeared in headlines when the EPA made plans to scrap the program. The blue and white logo is well recognized, and experts say the program has long had bipartisan support until recently. The poll found three-quarters of Democrats support providing consumer rebates for efficient home appliances, compared with six in 10 Republicans. Patrick Buck, 54, from Chicago, describes himself as a liberal Republican and is a fan of the consumer rebates for energy-efficient appliances. 'It seems to work in terms of transforming what people have in their houses, because a lot of people have a lot of old appliances and just can't afford new ones,' he said. Safe air, water, meat and produce The poll found only about two in 10 U.S. adults are 'extremely' or 'very' confident in the federal government's ability to ensure the safety of their drinking water, the air they breathe and the meat, poultry, fruits and vegetables they buy in grocery stores. About four in 10 U.S. adults are 'somewhat' confident in the federal government's ability to ensure the safety of each of these, and about 4 in 10 are 'not very' or 'not at all' confident. The Trump administration has announced plans to roll back rules and policies related to limiting pollution and greenhouse gas emissions, such as rules that limit pollution from power plants and blocking California's efforts to phase out cars that run on gas. The federal government has also cut staff at the Food and Drug Administration, the federal agency tasked with protecting public health and ensuring food supply safety. ___ The AP-NORC poll of 1,158 adults was conducted June 5-9, using a sample drawn from NORC's probability-based AmeriSpeak Panel, which is designed to be representative of the U.S. population. The margin of sampling error for adults overall is plus or minus 4 percentage points. ___ The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. The AP is solely responsible for all content. Find the AP's standards for working with philanthropies, a list of supporters and funded coverage areas at Isabella O'malley And Amelia Thomson-deveaux, The Associated Press
Globe and Mail
an hour ago
- Globe and Mail
Greenway Technologies Announces Uplisting to OTCQB Venture Market
ARLINGTON, TX, June 23, 2025 (GLOBE NEWSWIRE) -- Greenway Technologies, Inc. (OTCQB: GWTI) ('Greenway'), an advanced gas-to-liquids ('GTL') and gas-to-hydrogen ('GTH') technology development company, announced today that it has successfully uplisted its common stock from the OTC ® Pink Market to the OTCQB ® Venture Market ('OTCQB'). The uplisting was processed and approved by OTC Markets Group Inc., and Greenway's common stock commenced trading on the OTCQB on June 20, 2025. Greenway will continue to trade under the ticker symbol 'GWTI.' To be eligible for the OTCQB, companies must be current in their reporting and must undergo an annual verification and management certification process. 'This is a significant milestone supporting the growth of Greenway with our uplisting to the OTCQB,' said Kevin Jones, President of Greenway. 'This reflects our commitment to enhancing transparency, increasing market visibility and providing enhanced opportunities for our shareholders. We expect our uplisting to the OTCQB ® to allow access to a broader investor base, attract institutional investors and improve liquidity for our stock.' About Greenway Technologies, Inc. Based in Arlington, Texas, Greenway, through its wholly owned subsidiary, Greenway Innovative Energy, Inc., is engaged in the research and development of proprietary GTL and GTH syngas conversion systems that can be scaled to meet oil and gas field production requirements, or the requirements of various processes where natural gas is produced or available. Greenway's patented technology has been integrated into its recently completed first-generation commercial G-Reformer ™ unit, a unique component used to convert natural gas into synthesis gas (a mixture of Hydrogen and Carbon Monoxide). In the case of hydrogen creation, an additional new technology, the H-Reformer ™, has been created which creates synthesis gas consisting of Hydrogen gas and CO 2. When combined with an FT reactor and catalyst, G-Reformer ™ units can be deployed to process a variety of natural gas streams, including pipeline gas, associated gas, flared gas, vented gas, coal-bed methane, and biomass to produce fuels including gasoline, diesel, jet fuel, and methanol as well as valuable chemical outputs. When derived from natural gas, these fuels are incrementally cleaner than conventionally produced oil-based fuels. Notice Regarding Forward-Looking Statements: This press release contains forward-looking statements that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact included in this press release, are forward-looking statements. These statements are only current predictions or expectations, and are subject to known and unknown risks, uncertainties, and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements, including those discussed under the heading 'Risk Factors' in Greenway's most recent Annual Report on Form 10-K, and in subsequent filings with, or submissions to, the Securities and Exchange Commission (the 'SEC'), which are available on the SEC's website at Except as otherwise required by law, Greenway disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date they were made, whether as a result of new information, future events or circumstances or otherwise. Contact: Kevin Jones, President Greenway Technologies, Inc. Investors & Analysts Contact: Greenway Investor Relations ir@ SEC filings can be found at:
