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This piece has been expert reviewed and fact checked by Forbes Advisor Australia Board Member, Shani Jayamanne, award-winning senior investment specialist at Morningstar, who is also the co-host of Morningstar Australia’s Investing Compass podcast. Stock markets can be scary places for anyone new to investing: a mass of numbers, flashing screens and impenetrable jargon—a far cry from dropping coins into a piggy bank or paying cash into a savings account. It’s an especially formidable time to be a stock market investor in Australia—or anywhere else, for that matter. While we may be lucky enough to avoid a recession, there is concern that the US will enter one, which will have widespread implications for global economies. However, if you’re saving for the future, let’s say, five years away at the very minimum—investing in the stock market has the potential to produce greater rewards than cash deposits. And it can also head off the corrosive effect of rising inflation. Here’s a run-through of investing basics, plus a look at how beginners can buy stocks and shares.
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This article has been expertly reviewed and fact-checked by Shani Jayamanne, an award-winning senior investment specialist at Morningstar and co-host of Morningstar Australia’s Investing Compass podcast.
For those new to investing, stock markets can seem intimidating, with numbers, flashing screens, and complex jargon—quite different from traditional methods of saving like using a piggy bank or depositing cash into a savings account.
Currently, it’s a challenging period to navigate the stock market, not just in Australia but globally. While Australia may steer clear of a recession, concerns persist about the potential for one in the US, which could have broad economic implications worldwide.
However, for those focused on long-term savings goals, such as a time horizon of at least five years, investing in the stock market offers the potential for higher returns compared to cash deposits. Additionally, it can help mitigate the impact of rising inflation.
Here’s an overview of investing fundamentals and a guide to help beginners start with stocks and shares.
