We recently compiled a list of the top 15 U.S. economic indicators that every investor should know. This article discusses the top 15 U.S. economic indicators that every investor should know.
Why invest in stocks?
There are many different ways to invest, including stocks, bonds, and real estate. However, investing in stocks is one of the most advantageous options. New York University business professor Aswath Damodaran estimates that if you invested $100 in the U.S. stock market in 1928, that amount would be $1,000 by the mid-1950s, $10,000 by the mid-1980s, and $10,000 by the mid-1980s. By the end it would have increased to almost $750,000. Data shows that it takes almost 100 years to convert $100 to $1 million. This number is remarkable when compared to other asset classes. Over the same time period, a $100 investment in U.S. Treasuries would reach about $8,500, while real estate would only reach $5,000.
Many Americans are taking advantage of the attractive investment opportunities offered by stocks. According to Gallup’s Economic and Personal Finance Survey, 61% of Americans will own stocks in 2023. The number of people who own stocks has declined since 2008. This number decreased from 61% of Americans owning stocks in 2008 to 59% in 2009 and 56% in 2010. The number of people who own stocks has rebounded from 52% since 2016, according to the survey results. In 2016 it was 55%, in 2018 it was 58%, and in 2022 it was 58%. This figure will recover to its pre-2008 level of 61% in 2023, suggesting stock market stability and a return to local confidence.
A household’s total and disposable income, as well as education, also influence an individual’s investment habits. By 2023, 84% of adults in American households with incomes of $100,000 or more will have invested in stocks. This number was lower at 29% for households with incomes below $40,000. Education also influences investment habits, as 8 out of 10 college graduates invested in stocks. Better education and reasonable household income showed an increased propensity to invest in stocks.
Personal investment made easy
Robinhood Markets, Inc. (NASDAQ:HOOD) has made retail investing easy. Robinhood Markets, Inc. (NASDAQ:HOOD) pioneered commission-free trading, making trading and investing more accessible to beginners. On May 15th, Robinhood Markets, Inc. (NASDAQ:HOOD) reported operating data for April 2024. The number of funded customers reached 24 million at the end of April, an increase of 90,000 compared to March. Net deposits in April were $4.9 billion, representing 45% annualized growth since March. Net deposits have registered an annual growth rate of 35% since April 2023. A growing platform provides a great opportunity for individual investors to explore more options.
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Top brands that are friendly to beginners
Blue-chip stocks are companies with mature businesses and stable finances. These companies offer a beginner-friendly method for prospective investors and amateur investors. Apple Inc. (NASDAQ:AAPL) and Microsoft Inc. (NASDAQ:MSFT) are among the most popular blue chip stocks.
Apple Inc. (NASDAQ:AAPL) has an impressive track record of increasing profitability and shareholder value. On May 2, Apple Inc. (NASDAQ:AAPL) reported earnings for the second quarter of 2024. Apple Inc. (NASDAQ:AAPL)’s EPS was $1.53, beating estimates by $0.02. The company’s revenue for the quarter increased 8.32% to $90.75 billion, beating the market consensus by $299.27 million. Below are some of the comments made at the company’s financial results conference.
“Today, Apple reported record sales of $90.8 billion and EPS of $1.53 for the March quarter. The company set sales records in more than a dozen countries and regions, including, among others, Includes March quarter records in the Americas and Central America” East, Canada, India, Spain and Turkey, as well as record revenue records in Indonesia, which continues to be one of our markets with great potential achieved. Remember, as we discussed on our last call, a year ago in the March quarter, we were able to replenish inventory in the iPhone channel and meet the pent-up demand from COVID-19 in the December quarter. Please stay. Related supply interruptions for the iPhone 14 Pro and 14 Pro Max. ”
Microsoft Corporation (NASDAQ:MSFT) is another notable company that has shown a consistent pattern of growth and profitability. On April 25, the company reported earnings for the third quarter of fiscal 2024. The company reported EPS of $2.94, beating estimates by $0.1. The company’s revenue for the quarter increased 17.03% to $61.86 billion, beating the market consensus by $977.92 million. As of May 30, Microsoft Corporation (NASDAQ:MSFT) had soared nearly 20% over the past 12 months. Below are some of the comments made at the company’s financial results conference.
“We had a record third quarter, with revenue up 23% to more than $35 billion, driven by continued strength in the Microsoft cloud. , infrastructure ranging from business processes and developer services to models and data, is orchestrating a new era of AI transformation and driving better business outcomes across every role and industry. Here we walk you through the stack, starting with Azure regaining share as customers use us. We provide the platform and tools to build your own AI solutions and offer the most diverse range of AI accelerators, including the latest products from NVIDIA and AMD, as well as our own first-party silicon. ”
Top US Economic Indicators Every Investor Should Know
our methodology
To create a list of key U.S. economic indicators that every investor should know, we initially looked at more than a dozen sources, including banks, financial research organizations, and financial media. We then isolated terms that appeared in at least 50% of these sources and ranked them in no clear order.
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Top US Economic Indicators Every Investor Should Know
1. Gross Domestic Product (GDP)
Gross Domestic Product (GDP) is one of the U.S. economic indicators that every investor should know. A larger GDP corresponds to a larger economy and a larger market. By understanding and comparing GDP growth rates across countries, investors can better understand where to allocate their investments for maximum returns. By comparing GDP growth rates, investors can narrow down fast-growing economies and identify emerging markets to invest in. Additionally, the GDP report’s corporate profits and inventory data are valuable to stock investors as both categories show total growth over the period.
If you would like to learn about other major US economic indicators, check out our in-depth report, Top 15 US Economic Indicators Every Investor Should Know.
Insider Monkey takes a deep dive into a variety of topics. However, our expertise lies in identifying the best performing stocks. Artificial intelligence (AI) technology is currently attracting attention as one of the most promising fields. If you’re looking for AI stocks with more promise than NVDA, but trading at less than 5x earnings, check out our report on the cheapest AI stocks.
Read next: 24 Fastest Growing Countries in the World in 2024 and 15 Fastest Declining Economies in the World in 2024.
Disclosure: None. This article originally appeared on Insider Monkey.
