5 Reasons The Stock Market Is Regaining Popularity

The following is a guest blog post:

Nothing is ever truly constant in life; trends come and go, but the world keeps on spinning. The same principle applies to the stock market. As of late, it has been surging in popularity, with plenty of investors looking to secure a piece of the pie for themselves. Sometimes, even the subtlest of things can influence the market in a significant way, yielding short-term or long-term effects, so today, we’re going to briefly examine 5 causes that likely played a part in it:

1. North Korean threats seem to be submerging

When the North Korea was playing around with nuclear missiles, the threats had a short-term effect on the stock market. Although the potential threat of nuclear attacks seems to keep being somewhat a distraction, the market is no longer being affected by the perceived instability.

2. Trump is stabilizing in his presidential role

When Trump first entered the White House as the US president, he displayed all sorts of ambitious plans and had some rather revolutionary reforms in mind. This led to quite a bit of uncertainty in the market, because the people were finding it hard to discern what the future had in store for them and their investments at the time. Over the course of time, he abandoned his overzealous stance and started making compromises in order to get deals done. Due to this, the stock market has become more stable.

3. Cryptocurrencies have become mainstream

Just a decade ago, only the nerdiest of blockchain enthusiasts were aware of Bitcoin, but now, you could probably ask a random person on the street, and chances are they’d be familiar with the term. Cryptocurrencies, just like regular stocks, go up and down in value, so the concept of picking just the right time to jump in and potentially doubling or even tripling your investment has sparkled an interest in people’s hearts.

4. Europe is slowly digging its way out of the financial crisis

When the financial crisis showed its teeth, the whole Europe was impacted by it, particularly the countries with weaker economies like Spain, Greece, and Portugal. The consequences were devastating and many people lost their jobs. But now, thanks to all the structural reforms, the European economy is slowly getting back on its feet, which means the people are once again able to afford investing some money into stocks.

5. Stock trading is getting easier to get into

As the worldwide web keeps evolving, stock trading websites are becoming more accessible and easier to use, so everyone can become a stock trader if they so choose. Furthermore, websites like Commodity.com are letting you in on everything you need to know about making profitable stock market decisions, as well as how to identify the best stock broker platforms. With knowledge being available at the push of a button and the technology becoming ever more user-friendly, people all around the world are building up the courage to give it a shot.

Conclusion

Stock trading is no longer exclusive to economists and tech junkies. You, too, can participate in the action, as long as you’re willing to invest some energy in getting the needed education and learning the ropes. Who knows, you might end up becoming the next stock market millionaire!

13 thoughts on “5 Reasons The Stock Market Is Regaining Popularity

  1. Hi. Beyond some of the shorter to mid term trends you mention, I think investing long term in dividend growth stocks is a good strategy. It always worries me a bit when the “stock market surges in popularity”. Usually when the crowd jumps in, the party is about over. However, that is when the long term investor can pick up stocks at lower prices. Tom
    Tom @ Dividends Diversify recently posted…The Dividend Deep DiveMy Profile

    • Hi DD,

      In general, having a long term outlook for the stock market and your investments can help you sleep well at night. By putting yourself into a long term mindset you can comfortably ride out any near term volatility and not worry too much about the market becoming too popular or not. Thank you for sharing your thoughts.

    • Hi Passivecanadianincome,

      So true. These days the barrier to entry for stock market investing have been totally eliminated. With so many low and free investing options out there along with minimum investment amounts everyone can afford there truly is no reason to not have a stake in the market these days. Thank you for stopping by and commenting.

    • Hi DD,

      Agreed. I remember when I bought my first stock commissions were about $50 a trade. And that was with a discount brokerage. Full service brokerages charged triple digits to buy and sell stock. Today, investing is fast, cheap or free and available 24 hours a day via the Internet. What’s the reason people have to not invest??? As always, I appreciate your comment.

  2. Since the SEC abolished fixed commissions in 1975 (US), purchasing shares ceased to be “exclusive to economists and tech junkies”. Every instance,save one, cited as “proof” is either a one-off or short-term event which provides minimal solace to a long-term horizon view. (Ex. DPRK – what happens post summit, Trump – true on tax issues, not so on tariffs, etc.). The one truism I see is “Stock trading is getting easier to get into”, particularly with Fintech endeavors. But most DGI are not “traders” but investors.

    • Hi Charlie,

      Very well said and I think everyone can agree that, “Stock trading is getting easier to get into,” which simply affords the question of why more people aren’t into the stock market? Surprisingly, there are still a significant amount of Americans without a stock portfolio even with the many Fintech companies out there making investing much easier and cheaper too. Thank you for sharing your thoughts.

    • Hi TPS,

      I also think that the stock market has been gaining more mind share recently as it has climbed substantially since the presidential election. Sure, there is a lot more volatility these days but when you factor in how much the market has progressed in such a relatively short amount of time it begins to whet people’s appetite for risk and reward. Thank you for stopping by and commenting.

    • Hi DP,

      Well said. The market is truly open to everyone these days. It’s fast, easy and cheap to buy and sell stocks with most brokers offering free reinvestment plans to help compound your long term wealth. Thank you for commenting.

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