The stock market can be daunting, but thoughtful investors have amassed wealth. Misconceptions can lead to poor decisions. Despite challenges, the market has thrived, even through global crises and pandemics, nearing all-time highs. Historical data since 1926 shows positive returns over 20-year periods. Stocks usually go up, with better odds over longer time horizons.

Bull markets have bumps, with annual returns usually positive but average drawdowns of 14%. Bear markets can be quick or slow, causing significant declines. Investing for long-term returns requires enduring volatility. Market performance is driven by company earnings, which are why you invest in stocks.

Valuation methods may not predict short-term price movements. Prices can be cheap or expensive for extended periods. Market risks are always present, with unforeseen risks often causing market turmoil. Stocks come and go, with turnover driving market returns.

The stock market reflects major companies’ performance, not the entire economy. Many large companies do business overseas, impacting growth prospects. While a bear market could occur, the market has an upward bias driven by demand for better goods and services. Earnings growth fuels stock prices.

Read more at Yahoo Finance: 10 truths about the stock market