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Change the Stock Market Constant

Change the Stock Market Constant

Change, the only constant – Markets and investing constantly change, the signs change, the information changes. Change is the only stock market constant.

Change the stock market constant, continues as always. In our discussion of investing choices, we next lay out the context or a very brief history of the 1st of the big 3 investment choices.

This Part 2 of  the White Top View Series, Investment Choice discusses the basic choices for investing. Links to all parts of the White Top View Series, Investment Choice are at the end of this post.

Markets Trade Anything

Markets exist to trade every imaginable thing. They have been around forever. Or at least through all of advanced human history. Through the long history of markets, there has been one constant, change. Change is the only constant.

Trading things and parts of things including shares of companies was a natural progression in human social development. Most markets were local and in practical terms, restricted by barriers to entry. Technology, knowledge and contacts gave access. Restrictions by the rich and powerful controlled who obtained and how they accessed investments and opportunities.  

Change the Stock Market Constant And Mutual Funds Bring Change

We flash forward centuries and discover mutual funds. Mutual funds went very far in bringing democracy to investing. Invention of mutual funds or pooling the capital or money of many investors, was revolutionary. It allowed small investors, many common citizens, to form fund or capital pools.

These pools of capital were large enough to buy significant positions in an enterprise or take portions of several different opportunities. For the first time in history this accomplished an amazing investing feat! It gave much broader access to many more investors and dramatically increased the total capital pool available for investing and economic development!

Mutual Funds Predate The American Declaration of Independence

Historically, inventing mutual funds was a very big deal! Astounding as it may seem, this innovation predates the American Declaration of Independence! The first mutual fund appeared in Holland in 1774!

Mutual funds democratized and popularized investing. They gave practical market access to many millions of small savers and investors. Now, assets under mutual fund management, total multiple trillions of dollars. Funds cover every imaginable investing and business angle of every nation, market, industry and economic sector. Mutual funds range from those that offer extremely broad market coverage to some of exceptionally narrow focus. 

The greatest achievement of mutual funds was bringing many ordinary citizens into the world of investing. That wonderful achievement has been eclipsed by more current developments and modern financial instruments. Products developed in more recent times, take advantage of efficient digital technologies and avoid the huge cost of the now obsolete mutual fund structure.

When horses and sails were the latest in technology, mutual funds were revolutionary. The mutual fund sale, distribution, management and administration structure show this historic foundation. So do the high costs associated with mutual funds.

Mutual funds have an outdated structure, sales and service culture and high fees that all together renders an expensive and obsolete fund system. With the mutual fund management and administration structure, as well as a distribution system designed for a pre-electronic, let alone pre-digital age, mutual fund costs are far too high.

However, with managing trillions of dollars at stake, this powerful economic and financial force is not changing without a fight. Please see the links to other White Top View blog posts discussing mutual funds.

Changes Good For Your Wealth

The White Top View Series, Investment Choicediscusses far more efficient and cost-effective ways to invest. If you own mutual funds you will want the information in ETF Revolution Changes Investing History. Dramatic cost differences can dramatically improve your net returns. Make the change to put much more money into your own pocket.  

When computers arrived and the digital age unfolded, financial services underwent dramatic cost structure shake-ups. Paper driven financial industry players saw dramatic plunges in operating, administrative and sales costs.

In time, innovative discount brokers emerged to wage fierce cost based, price wars for clients. Investors saw the cost of transactions fall from well over $100 a trade to, in one case, $0.01 per share. Now transaction fees under $10 are very common. These low fees come with no service, advice or help. Investors wanting to take advantage of low fees need to know what they are doing.

It is well worth your while to learn how to invest for your own benefit. Learn it and do it. The significant differences go directly into your pocket.

Many new and non-investors are using WhiteTopInvestor.com to learn basic investing from this site dedicated to helping non-investors become knowledgeable, comfortable, confident investors on their way to mastering their own financial security and independence.

The cost driven evolution unfolding over decades, continues to revolutionize investing today. Over time, markets everywhere continue evolving towards becoming open to almost anyone, anywhere.

Next in Part 3 we our brief overview context discusses the ETF Revolution Changes Investing History.

Share the knowledge!

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Read Other Issues of White Top View at WhiteTopInvestor.com

Your comments and questions are welcome here. Or email me at WhiteTop@WhiteTopInvestor.com. Bite-sized White Top View posts are lessons to help non-investors on the way to becoming knowledgeable, comfortable, confident investors. By demystifying investing and giving you a better understanding of markets, one small step at a time, you can become the master of your financial security and independence. The White Top Views email list will never be shared or sold.

Have a prosperous day!

Bryan

White Top Investor
whitetop@WhiteTopInvestor.com
www.WhiteTopInvestor.com
Let’s connect, follow me: Twitter Google+ LinkedIn Facebook

These discussions and information intend to help you better understand markets and investing. I am not a financial or investment advisor; opinions are for informational and educational purposes only and are not intended as investment advice. For syndication of the site or blog, please contact info@WhiteTopInvestor.com.

Images courtesy FreeDigitalPhotos.net

Links to the White Top View Series, Investment Choice

Part 1: 3 Big and 6 Other Investment Choices

Part 2: Change, the Stock Market Constant

Part 3: ETF Revolution Changes Investing History

Part 4: 1 of 3 Big Investment Choices – Mutual Funds 

Part 5: Change to Accelerate Investment Returns

Part 6: Low Costs Can Double Investment Returns

Part 7: EXOTIC ETFs – Caution Aggressive Investing Can Bite

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