The Importance of Investing in Equities

Why Invest in Equities in Today’s Market?

History has shown that equities can be great investments over the long term. Despite recession, war, natural disasters, corporate scandal and other financial crises, stocks have historically offered higher long-term growth potential than other types of investments. 

In fact, take a look at the growth of a $100,000 investment in various asset classes over the last 30 years. Over this time period, stocks grew to more than $2.1 million, outpacing cash-equivalent investments like CDs and Treasuries by $1.6 million and staying significantly ahead of bonds. Note: Past performance is not a guarantee of future results.

Equities May Help Keep Your Assets Growing, Even in Volatile Times

Importance of Equities Chart

The Longer You Stay Invested, the Greater Your Chance of Earning Positive Returns

While stocks can be fairly volatile over short periods of time, they may be less risky over the long term. Consider the impact that time has on a hypothetical stock portfolio. As you can see from the chart below, over the last 85 years, stocks as represented by the S&P 500 Index have never experienced a loss over any 15-year period. Keep in mind that past performance is not a guarantee of future results.

Time May Lessen the Risk of Stock Investing

 

Talk to Your Financial Advisor About the Benefits of Adding Stocks to Your Portfolio. Learn more about AIG’s equity funds.