CNBC Select turned to Moneta Partner Patrick McGinnis as an “investing guru” for a story on myths about investing in the stock market.
McGinnis first addressed the misconception that investing in the stock market is like gambling.
“In gambling, somebody wins and another person loses,” McGinnis said. “Investing is to make a profit, and that profit is distributed to shareholders, making it a long-term way of gaining wealth versus short-term speculation.”
He also spoke about the misconception that investors can time the market, noting that this is incredibly difficult because two decisions need to be made with precision: when to get out and when to buy back in.
To illustrate his point, McGinnis gave the example of how investors were looking to pull out of the market in the early days of the COVID pandemic while claiming that they would get back in when things got better.
“Selling low and buying high is not a way to make money in the market,” McGinnis said.
Click here to read the full story by CNBC Select.
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