Of course, both these reasons are contingent upon the fact that stocks as an asset class provide investors with necessary and freely accessible tools to understand and analyse companies and businesses before investing in them.
The stock market proves to be a volatile entity time and again. The global pandemic, extended by new strains of the virus, further tested the stability of financial markets throughout 2021. Investors and traders alike were subject to the vagaries of the movement in stock prices and indices, to a larger extent than pre-pandemic times.
Regardless, it is important to acknowledge that volatility is what makes investing both practical yet exciting. Practical because, without much movement in the stock market, investors would find alternative asset classes better suited in achieving financial goals; exciting because investors’ prospects of being able to realise their case regarding the stocks acquired.
