No other investment holds as much potential as stocks over the long term. Not real state. Not bonds. Not saving accounts. Stocks are not the only things that belong in your investment portfolio, but they may be the most important, whether they are purchased individually or through stock mutual funds.
Since 1926, stocks of large companies have produced an average annual return of more than 10% that includes such lows as the Great Depression, Black Monday in 1987 and the stock slide followed September 11, 2001.
Today, the world’s economies are highly interconnected. People travel from country to country. Goods are shipped around the world. If you were to look at the labels on the clothing worn by the customers in KFC, you would probably find that some of the clothes were manufactured in China, perhaps some in Malaysia, some in France, some in the United States, some in Guatemala, and so on. Information also moves around the world. The customer sitting in the corner using a laptop might be in the process of transferring money from a Canadian bank account to a Hong Kong account; the person at a neighboring table using a mobile phone might be downloading an app from a web server in Illinois. This globalization brings many benefits, but it means that recessions can be global as well.