More people enter in stock market as they see it as a source of income in this time of pandemic

More people enter in stock market as they see it as a source of income in this time of pandemic, COL Financial Analyst Kien Lester Franco said.

The surge of Filipinos getting a piece of some shares was due to the lost of jobs from March when the community quarantine started. But this is a very risky move if you have no enough knowledge, Franco said.

Investing in stocks comes with substantial risk, especially in the short term.
While stocks are often viewed as a safe investment strategy in the long term, nothing is guaranteed. The stock market is volatile, especially in the short term, and can swing wildly in between extremes. If you’re looking to invest your money in the short term, there are usually much more reliable, low-risk investment strategies available.

The stock market has historically grown at an average rate of about 7% per year. From year to year, however, the stock market can experience dramatic highs and lows. Even over a long period, a return on an investment in the stock market is never guaranteed. Investors should be cautious when it comes to investing in the stock market, and understand that nothing is a sure bet.

Investing all of your money in the stock of a single corporation is very risky.
It can be tempting to go “all in” on a promising young company that you think might turn into the next Apple or Amazon. However, investing all of your money in a single company is a risky proposition. There’s no way of reliably predicting which companies will be an overnight success. If you guess wrong, you may lose some or all of your investment.

Although you can start stock market investing with just five thousand pesos with some stock brokers, the more funds you have the better you can diversify your holdings to minimize risk. Many experts recommend putting not more than twenty five percent of your savings to be safe.

Source: Peso Economics