Indexes
This is used to quickly gauge the entire stock market
An index
What is the single, most important factor in growing your investment portfolio and taking advantage of compound interest
Time
This industry has it's own index, called the NASDAQ, and it has been very favorable in the last 25 years.
Technology
You have more today than tomorrow, and less than you did yesterday. A clear advantage over your parents and Mr. Bell
TIME. Invest early and often
The decreasing of one's purchasing power over time
Inflation
The average rate of return for the S&P 500 since 1957
11%
Investing with emotion, luck, and constantly attempting to buy low and sell high
Timing the Market
This stategy of investing is when one owns stocks in a multitude of industries and sectors
Diversification
This type of passive income is used to make the most millionaires in the U.S.
Real Estate
In 2021 - 2022, inflation was as high as
6-8%
This index is the oldest of all indexes, having been created in 1896. In consists of the 30 major leaders in a variety of industries
Dow Jones Index
A piece of the profits that are paid out to shareholders
Dividends
Come October, a lot of the Tech Industry will tell the world the status of their companies through
Quarterly Earnings
One that is older, closer to retirement may have a _________ investing strategy. While one that is younger, with lots of years of working heard of them, may have a ___________ investing strategy.
Conservative ; aggressive
What time does the stock market open and close if you lived in New York?
9:30am - 4:00pm
Purchasing this 'stock' that tracks this index allows for the most diversification
S&P 500
Saving creates linear growth, where compound interest creates what kind of growth
Exponentional
Exxon Mobile, Chevron, BP, American Electric all belong to this industry
Energy
After paying necessities like shelter and food, you must do these 3 things before thinking of investing
Build Emergency fund, Pay off bad debt, Maximize retirement programs
Capital Gains Tax
The leader of the S&P 500 and the the company that makes up for the most weight in this index
Nvidia (followed by Microsoft and Apple)
This program automatically purchases more shares of the company that gifted the dividends
DRIP (Dividend ReInvestment Program)
This acronym allows one to buy a little sliver of multiple companies under one ticker (think QQQ)
ETF (Exchange Traded Funds)
What are the three types of income that we talked about in class?
Earned, Passive, Portfolio
Investing in the stock market and benefiting from compound interest can help you build significant wealth. However, what are two major factors that can reduce the real value of your portfolio?
Inflation
Capital Gains Tax