Far too many investing services claim to give you unprecedented returns for absolutely no effort. The reality is, there is really only one strategy for “passive” investing income that has been proven to work for decades. Any guide that tells you differently is likely written by a snake oil salesman selling you something.
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After clicking this link, you may have been surprised to learn that the “secret” is something so simple. Buy ETFs, and as much as you can. ETFs are investment funds, similar to stocks, that hold a diversified portfolio of assets. ETFs like SPY and VOO track major indices, specifically the S&P 500, providing investors with broad market exposure through a single investment.
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By buying ETFs, you automatically achieve diversification without having to think about it. When you invest in an ETF, you’re essentially buying a basket of assets, whether they’re stocks, bonds, or commodities, spreading your risk across many holdings. This means if one investment takes a hit, the performance of others can help offset that loss. Think of it as not putting all your eggs in one basket; instead, you’re spreading your eggs across several baskets, each representing different sectors or regions of the market. This approach is what makes ETFs so appealing; they offer instant diversification with just a single transaction
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By choosing to purchase ETFs, you eliminate the need to perform financial research. You can invest in a single asset and watch it grow over time. Mathematically, investing just $500 per month every month is all you need to become a millionaire in 40 years! Imagine if you invest $2000/per month!
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That's not to say that buying ETFs is risk-free. If the broad market turns, these ETFs will also fall. For example, during the COVID-19 pandemic, the S&P500 fell by more than 30% from its peak. If you were someone looking to retire that year, having your life savings eviscerated to a third of its value made it nearly impossible, particularly if you were one of the unlucky fellows who panic sold near the bottom.
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However, if we look at long-term historical returns, buying ETFs like SPY outperforms the vast majority of other stock market strategies. This is particularly true when compared to buying individual stocks.
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If you do choose to buy individual stocks, you need to perform research. You need to stop thinking about it as "stocks", but rather purchasing small bits of a company. What does the company do? How much money do they make? Are they efficient in their operations? Are they expected to grow? Luckily, platforms like NexusTrade makes this research process easy.
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Choosing not to perform research is setting yourself up for failure. It's akin to gambling because these metrics are critical when evaluating the financial health of a company. That's why, if you don't want to perform this type of research, you should invest in ETFs instead.
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That’s it. That’s the “secret”. And as you can see, it’s not much of a secret; it’s traditional investment wisdom that we’ve known for decades. Buy ETFs, keeping buying, and don’t worry about timing the market. If you want safe, stable, consistent returns, that’s all you really have to do.
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P.S. Am I emailing you too often? Kindly reply to this email and let me know. Also, don't be shy to tell me what you think about these type of emails! Your feedback here is invaluable.
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Disclaimer: The content provided in this post is for informational purposes only and is not intended as financial advice or a recommendation to buy or sell any securities. I am not a financial advisor. The insights and analysis shared are meant to demonstrate the capabilities of NexusTrade in automating financial research. It's important to conduct your own due diligence and consult with a professional advisor before making any investment decisions.
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