15 Reasons to Invest in the Stock Market in 2022

It’s a fact: It's been a bumpy ride for investors in 2022. From geopolitical unrest to inflation to ongoing supply chain constraints that continue to weigh down the top and bottom lines of companies across industries and sectors, it's understandable if you're questioning whether right now is the best time to be investing your hard-earned dollars into the stock market.

Here are 15 reasons why you should absolutely invest -- and stay invested -- in the stock market in 2022 and beyond.

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When you let too much cash sit on the sidelines -- particularly in periods of high inflation -- the buying power of that money steadily decreases with time. On the flip side, if you put that money into stocks right now, you may not only have the opportunity to scoop up some great companies at bargain valuations, but you can choose to invest in companies that have pricing power in these kinds of environments.

In addition, value-oriented stocks can present prime investing opportunities amid high inflation. These companies tend to deliver more robust returns in these windows of the market, while generating steady gains in less inflationary periods.

As a caveat, you shouldn't be investing your emergency fund or cash that you think you'll need in the near future.

ALSO READ: 3 Powerful Stocks That Can Beat Inflation

When you maintain a long-term investing mindset, you’re not buying companies based on share price performance over the next few months or even years, but on their ability to deliver returns over a period of many years.

One of the most exciting and satisfying aspects of investing in the stock market is the ability to own part of a compelling business that you love and take on a vested interest in its future.

ALSO READ: How Much Do I Need to Retire Comfortably?

Whether you prefer investing in slower-growth companies that tend to face less volatility or high-growth stocks that often endure more share price fluctuation, build a portfolio that fits your individual appetite for risk.

When you invest in quality companies and commit to holding them for at least three to five years or longer, there's a true pride of ownership, not to mention financial gain, that comes with watching that initial investment grow over time.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

It would be nice if we as investors had a crystal ball with which to time the ebbs and tides of the market. The good news is, you don't need one, provided you stick to a long-term investing strategy and mindset. Trying to time the best or worst moments in the market isn't much better than a game of luck, at which neither you nor anyone has much chance of succeeding.

ALSO READ: 3 Top Stocks to Buy During a Sell-Off

Think you need to be rich to invest? Think again. If you start out with just a couple hundred dollars to invest in the stock market, you can quickly put that to work in a variety of stocks by taking advantage of the option of fractional shares. You can also diversify your portfolio much faster by putting cash into investment funds like index funds or exchange-traded funds that feature a variety of stocks and stock sectors.

Want to create an extra source of cash flow but don't know where to start? Then high-quality dividend stocks should be part of your overall investment strategy. Most dividends pay out quarterly, but some pay out even more frequently on a monthly basis. Those dividend payments can provide an additional source of investment capital, or income that you save.

ALSO READ: Want $1,500 in Passive Income? Invest $10,000 in This Warren Buffett Dividend Stock and Wait 3 Years

You don't need to expend energy trying to figure out when the best moment to invest is. When you buy into top-notch companies, and keep adding to them consistently over a period of years, you have a far greater ability to generate life-changing returns than you would by jumping in and out of the market. In fact, in attempting to guess the perfect moment to buy or sell stocks, you could easily miss that window of robust growth.

Whether it's to help pay for a house in the future or save for retirement, pinpointing any key objectives you have over the next five to 10 years -- and beyond -- can help you determine how and where to invest your money in the way that works for you and enables you to get closer to those life goals.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Do you like healthcare stocks? Are you excited about the biggest durable trends in tech? Maybe you're looking to invest in the future of work? The great news is, as you build your basket of stocks, you can (and should) be diversifying in a range of industries and companies. This lends balance to your portfolio and provides multiple stimulants for portfolio growth in all kinds of market scenarios.

Take the time to thoroughly study and objectively assess any company before you invest in it. Don't just look at valuation. Take the time to study the company's financials, read up on its leadership, competitive advantage, and industry or industries it operates in.

When you approach stock buying with a mindset of ownership and the intention to hold the company for many years, you should ensure you know the business inside and out before you buy it.

ALSO READ: 3 Mistakes You Might Make on the Road to Diversifying Your Portfolio

While there are certainly valid reasons to sell a stock, share price fluctuation alone (without core changes to the underlying business) shouldn't be one of them.

If you want to sell a stock, carefully evaluate your reasons for doing so before you jump ship. The decision to sell a stock should be based on solid investing reason, and never out of emotion or panic.

Unfortunately, dumping a stock because it's down temporarily could result in you missing out on the gains from a rebound, not to mention likely selling at a loss.

No one can say with certainty whether or not the next bear market is around the corner or on the distant horizon. But the possibility of one needn't fill you with fear or panic.

In fact, a bear market can present a wealth of opportunity for the forward-thinking investor with a shrewd mindset and the patience to wait for the market's recovery. Why? Bear markets can present an unparalleled window to buy incredible companies at stunningly low prices.

ALSO READ: Why Bear Markets Can Help You Create Life-Changing Wealth

Even in the current market environment, buying opportunities are everywhere. From growth stocks trading at on-sale valuations to tried-and-true value stocks, it's a great time to be a long-term investor.

A long-term investing strategy is the best approach to successfully generate portfolio returns consistently and over an extended period of time, but the way in which you invest can and should be personal to you.

Want to retire at 40? Your investing approach will almost certainly differ from someone who plans to exit the workforce at the more traditional retirement age.

Whether you lean toward more conservative investments, tend to be a more aggressive investor, or fall somewhere in between, you can and should construct your portfolio in the manner that fits with your financial goals.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Remember, the market always goes up more than it goes down. When you invest and stay in the market over a period of decades, you can experience the satisfaction of watching your returns grow and compound over time -- whether the market experiences down periods that last for weeks, months, or even a few years.

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