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With interest rates no longer languishing at their prolonged lows, the higher income available from cash savings means many individuals are perhaps considering why they would risk their money in the stock market.
But the prime driver for investing – as opposed to just saving – is the potential for far higher long-term financial returns.
Take the past five years, during which time there has been a global pandemic, war in Ukraine and a tricky economic backdrop that saw inflation and latterly interest rates soar.
But notwithstanding this backdrop, the SP 500 index of the US’s biggest companies has risen by more than 86% over the period; a far higher return than any savings account could have delivered.(1)
Of...
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