The stock market is premised on the fact that investors will only invest if they’re compensated for taking the risk of buying stock.
The stock market is premised on the fact that investors will only invest if they’re compensated for taking the risk of buying stock. Think about it. Nobody would invest in any stock that they expected to rise 1.5% annually. You could potentially get the same or better returns from something like a smart savings investment account to any number of other investments that don’t carry as much risk as stocks do. They’d be insane to take more risk in order to collect an identical return.