This video is part of our Basic Investment Course: http://www.invest-owl.com/smart-invest

I am always amazed at how few people really understand why investing has NEVER FAILED to generate fantastic returns for those who participated in the Stock Exchange over the long run.

Understanding the reason precisely and incorporating it into your thinking process, might be your most powerful weapon and advantage on your way to become wealthier.

So, what is the reason, the force that almost guarantees investing in companies is going to be successful over the long term?

Try to ask yourself what would happen if one day you would have woken up to find all corporations on earth are gone?

you would probably freeze to death if that happened on winter as the electricity generated by your friendly utility would be gone.

There would be no food in the local supermarket and no supermarket to speak of.

You would have no car, and there would certainly be no public transportation.

If you become sick, there would be no doctor to care for you, and if you had one, he would have no medical supplies and no drugs to give you to fight disease. you could die from simple complications of skin infection.

Then, there would be no TV, no Laptop, smartphone, Tablets. There would be no games to play, books to read Do I really need to continue?

I think you got the point.

Life is made livable and enjoyable by the goods and services made by Corporation. You really can’t live without them.

As long is people will exist this will continue. The more people live caused by longer life spans and more births, will increase the total amount of goods and services produced and delivered.

As a result the profit generated will increase. This is the basic investment rationale.

This is the reason why, overall, in average, the whole economy is going to expand and profits grow.

Throughout history, this statement has never ever proven false.

Think about it. This is the powerful engine that is driving the Economy forward and generates more profits and the future returns on your investment.

The force that moves Corporations up is powerful and infinite.

When you invest in the stock exchange correctly, and over the long term, you are taking very little risk if any.

In fact, the risk of you being involved in a car crash is way higher.

In the long run the economy is growing, but you have to understand that it doesn’t grow in a linear fashion instead the economy is growing in cycles.