Behind Equity, there’s 41). human capital.
It’s human capital that keeps 42). adjusting equity for inflation.
43). No other asset-class quotes on an inflation-adjusted basis.
That’s good news for you, because 44). equity takes care of the number one wealth-eater (inflation) for you.
All world equity ever quoted, whether currently existing or not, has 45). returned 6% per annum compounded, adjusted for inflation.
46). All equity ever quoted that still exists has yielded 11% per annum compounded, adjusted for inflation.
Equity selected with good due diligence, common-sense and adherence to basic rules listed here and in previous articles is 47). well-capable of yielding 15%+ per annum compounded, adjusted for inflation.
However, equity is 48). a battle of nerves, at times.
This asset-class is 49). more about creating long-term wealth.
It can be used, though, to 50). generate income through trading.
51). Trading, however, is burdened with more taxation, commission-generation and sheer tension.
Trading equity 52). eats up your day.
Investing in equity 53). gives you enough room to pursue many other activities during your day.
Trading strategies are 54). diametrically opposite to investing strategies.
55). It takes market-players the longest time to digest and fully comprehend 54).
For long-term players, 56). up-side is unlimited. This is a vital fact.
Also, 57). downside is limited to input. Factor in good DD, and that very probably won’t even go half-way.
58). Thus, 56). and 57). make for a very lucrative reward : risk ratio.
Equity needs courage, to 59). enter when there’s blood on the streets.
It also needs detachment, to 60). either exit when required for monetary reasons, or when everyone else is getting ultra-greedy and bidding the underlying up no-end.