The Truth Behind Stock Market Myths

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Like it would for any subject, word-of-mouth can have a large impact on whether or not people decide to get involved with the stock market - "this can happen, that can happen, and you'll definitely want to stay away from that." But while some of the widely accepted beliefs have some truth to them, there are also a lot of beliefs that turn people away when they simply don't have to.

Thanks to NASDAQ, today, we're here to clear up some confusion and share the real truth behind a few of the most common stock market myths - take a look below.

Myth: Investing is the same as gambling.
Fact: Having a share of stock means to have ownership in a company - at the end of the day, it allows the share holder to have a "claim on assets as well as a fraction of the profits that the company generates." With stocks, there is value created each and every day. On the other hand, NASDAQ refers to gambling as being a zero-sum game, where there isn't ever any value created. Essentially, gambling results in money being taken away from one person and handed over to another. When you really assess the difference between the two, it is easier to understand that the value that can be provided through investing does not compare to the chances you take when gambling.

Myth: Only brokers and the very wealthy make money through the stock market.
Fact: It doesn't matter what class you fall into or how much experience you have, the stock market provides opportunity for everyone. Especially since the Internet was developed and more people started to gain access to information about investing and the stock market, it has become much easier for people to view the data they need and access the resources they're looking for to help them understand how it all works. In fact, NASDAQ explains that individuals may even have an advantage over institutional investors since they can more-so afford to focus on long-term goals. Thus, no, the stock market is not just for certain groups of people.

Myth: What goes up, must come down.
Fact: This may be true in terms of gravity and physics, but you cannot carry this same principle over to the stock market. Ultimately, the reason that a stock does good or bad has to do with the company - if the company is run well, why wouldn't stock continue to go up? While this isn't to stay that a stock that goes up will never come back down, you would be doing yourself a disservice to assume that a negative turn of events will always follow a positive one.

As professionals in the financial planning industry, we know that there is a lot to understand about the stock market and investing, and we know that it can be quite confusing unless you've studied it all for a long time. That's why we want to help!

Whether you're just about to get your feet wet in stocks or have been investing for years, allow us to work with you on developing a strategy that can provide you with a financial benefit in the long run.

To meet with one of our investment advisors, please give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com today.

Investing involves risk, including the possible loss of principal. Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations.

Why Does The Stock Market Fluctuate?

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

You don't have to be a seasoned investor to know that stocks go up and down - just listen to the news or walk through Times Square in New York City and view the board with all of the stock market updates. But despite the fact that this is normal and something all investors should expect, a common question surrounding the topic is why? Why is it that stocks continue to go up and down every day, each week, and so on and so forth?

Truth is, one of the main reasons that the stock market fluctuates is because of an idea that you're probably familiar with - supply and demand. Essentially, when there is more demand for a stock and more people want to buy it than sell it, the price will naturally go up. On the other hand, if more people are trying to sell a stock than buy it, the price would be expected to fall.

Now we know your next question - what makes people want to buy or sell a particular stock? Ultimately, investors look at a company and try to determine its worth before deciding if it's the right company to invest in - for example, they may consider if there has been positive news or negative news surrounding the company lately. In this case, one of the main things that investors consider is a company's earnings. Companies that go public must report their earnings once each quarter, which is how investors can get their information about whether or not a company is on a good path or a bad path.

Although these ideas are some of the top contributing factors to why the stock market fluctuates, keep in mind that no one can really say for sure why stocks change and at the frequency that they do.

If you're new to investing, we know that the cause behind stock market fluctuation can be confusing despite the amount of research you do on the subject. That said, we want to help clear up any questions you may have about the stock market, as well as work with you to figure out an investment strategy that will work in your favor!

To get started with an advisor here at American Investment Planners LLC, please give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com - we'd love to hear from you!

Tips For First Time Investors

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

While putting $20 in an envelope every week can help you save, investing is one approach that can really benefit us all financially. Yes, the markets swing here and there and can cause a bit of a stir, but when you look at the bigger picture, the benefits of investing might outweigh the negatives you may experience.

Let's not get too ahead of ourselves, though - investing is not something we can master overnight. As financial planning professionals with years of experience with various types of investments, we know that the process of investing can seem quite confusing at first. That's why today, we're here to provide some helpful tips for new investors and those investors who may not be familiar with how it all works. They are:

Have a long-term goal.

It would be nice to see our money double in just 24 hours, but that just isn't how it works. That said, all investors should have a long-term goal or two that they're trying to reach. While it's not a bad thing to have a short-term goal that you'd like to reach too, for investment purposes, it is more beneficial to focus on the future.

Don't believe everything you hear.

Your second cousin has had incredible success with investing, so you should do exactly the same thing, right? Wrong! Of course it's always recommended that you seek advice about the investments you choose, but unless that advice has come from a professional, it may not work out in your favor. If you're thinking about trying some strategies that your friends or family members have suggested, consult with a financial planner to see if that strategy is really right for you.

Take the time to research.

If investing is a topic you've never given much thought too before, it's extremely important that you do some research and learn some background information before making any major decisions. A good place to start is by learning the definitions of terms that you're going to hear a lot in conversation, such as what "stock" really is.

Prepare for market swings.

It can be scary to look at your investments and see them take a turn in the wrong direction, but you must know that this is normal. Just like you should be focusing on long-term goals, also focus on long-term results. It isn't unusual for investments to change drastically in a short period of time, and if you're constantly monitoring your total balance, it'll drive you crazy to see things going back and forth! But if you do insist on checking in regularly, avoid changing your investments just because you don't like the way things look right now.

Seek professional guidance.

Going into investing alone can be difficult - not to mention, you may not be doing the best that you can for yourself financially. If you want to make sure that you're taking the best approach to investing for your personal financial goals, sit down with a financial planner who can show you all of your options and really walk you through the why behind each strategy.

At American Investment Planners LLC, we've worked with investors of all ages and have all of the tools and resources needed to help YOU next. If you're ready to plan for the future and want to plan right, contact us at (516) 932-5130 or email info@americaninvestmentplanners.com to set up an appointment with one of our advisors today.

Dos and Don'ts of Investing

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

When it comes to investing, many people are often hesitant and avoid "putting their money in the market" because they realize that there is always a possibility of losing it. Although investing is a balance between risk and reward, you certainly shouldn't avoid the market all together just because you feel skeptical about it. On the other hand, you also shouldn't jump the gun too soon and invest immediately without doing your research - that's when the potential for losing money is higher. That being said, when you know how to invest (which you can learn by investing some of your time), you can make smarter decisions and potentially reduce some of that fear (and hopefully, your chances) of losing out in the future.

The following are a few dos and don'ts of investing that you can start with if you're thinking of getting into it:

Dos:

• Thoroughly research where you plan to put your money to ensure that the benefits are worth it. 
• Pursue a variety of investment options; your portfolio should include an array of investment types!
• Know the fees that are attached to each of your investments. You might feel that the year brought you multiple gains, however, by the time you pay your dues you might find that you wind up with less than you started with - this goes back to research!

Don'ts:

• Only invest in areas that you or others "say" will do well. Furthermore, you also should not invest solely in those stocks who you feel are "due" to win - you can't predict the market! 
• Rely on your emotions. Similar to the previous don't, your feeling shouldn't be the only driving force behind your choices.
• Wait. The sooner you start investing, the better. While you can make up for loses that you experience down the road, you can't make up for lost time.

Being that investing is a serious matter, it's important that you are familiar with exactly how to proceed before making any decisions. That's where we come in! Although your own research will guide you towards making better choices, sitting down with an expert financial planner allows you to receive the professional guidance you would otherwise miss out on. For more information about our investment services and how we can help, visit us at www.americaninvestmentplanners.com or contact us at (516) 932-5130 today.