The truth about investing is that no one knows what’s going to happen.
But you can still make smart decisions based on the data you have and your own personal goals.
When it comes to investing, many people think they need to jump into the stock market and start trading like madmen (or women). But there’s a better way to approach this: index funds.
An index fund is a type of mutual fund that tracks a specific market index, like the S&P 500. This means that if the S&P 500 goes up by 10%, your index fund will go up by 10%. Index funds are also passively managed—meaning that instead of using active traders or analysts to pick stocks, they simply buy all the stocks in an index at once and hold them until they’re sold again later on down the line.
And while they may not be as sexy as day-trading, these passive investments outperform actively managed ones over time—and with less risk!