If you had $5-10k to invest...The Mick or Stocks?

[Timbegs]

The stock market meaning the major indexes?

Two major reasons are the fact that these indexes often represent the best American companies and value these companies based on their growth and profitability. Companies that fail are bounced from the index. Like not counting dropouts in the graduation rates. Also, inflation and wages play a key role. Most often, companies pay for wage increases by offering 'less product' or raising prices. Over time, this will create inflation over the long term and that inflation is better reflected in a stock. That's why you here people complain about wage growth against cost of living. Put simply below:

If milk is 4 dollars a gallon and I make 100 a day, and the cost of milk goes to 8 and I get a raise to 150, I am making more money but I can't purchase as much. That's basic inflation. Along the lines of the same example, 100 in milk company stock in that scenario would be worth 215 after the price change and 'raises' because they're profit margin went up despite offering a raise.

That is as best as I can explain it while keeping it simple and not putting people to sleep. Bottom line, most we'll run companies use these tricks to pay off their investors - the shareholders. Being one means you've got a share of the pie.