Investing in the stock market has always been seen as a risky endeavor, with many people feeling skeptical about putting their hard-earned money into something that can be affected by numerous factors beyond their control. However, over the past 20 years, there has been one asset class that has consistently outperformed the rest – and that is stocks.

This is a significant change from the past, where people have traditionally relied on real estate or gold as the best performing asset class. But with the rise of technology and the growth of the global economy, stocks have emerged as the top-performing asset class in the last two decades, providing investors with a range of positive benefits.

1. Higher Returns

One of the most significant advantages of investing in stocks over the past 20 years is the potential for higher returns. In fact, according to a study by Fidelity Investments, the average annual return of the S&P 500 index (a collection of 500 large-cap U.S. stocks) over the past 20 years has been around 8%, which beats the returns of other major asset classes such as bonds, real estate, and gold.

This is due to the steady growth of the global economy and the increasing adoption of technology, which has resulted in the growth of many successful companies and subsequently, their stocks. For example, companies like Amazon, Google, and Apple have seen exponential growth in their stock prices over the past two decades, providing investors with substantial returns.

2. Diversification and Liquidity

Another advantage of investing in stocks is the diversification it offers. Unlike investing in a single property or asset, buying stocks allows investors to spread out their risk across different industries, companies, and even countries. This means that if one industry or company underperforms, the overall impact on an investor's portfolio is limited.

Additionally, stocks are highly liquid, meaning they can be easily bought and sold. This gives investors the flexibility to quickly reevaluate their investment strategies and take advantage of new opportunities as they arise.

3. Potential for Passive Income

Stocks can also provide a source of passive income for investors in the form of dividends. Dividends are payments made by companies to their shareholders, usually on a quarterly or annual basis. As companies continue to grow, they may increase their dividends, providing investors with a steady stream of passive income.

This can be particularly beneficial for retirees or those planning for their retirement, as it can supplement their income and help them maintain their lifestyle.

4. Easy Accessibility and Low Barrier to Entry

Unlike other asset classes such as real estate or gold, investing in stocks does not require a large sum of money. With the rise of online trading platforms and the availability of low-cost index funds, it has become easier than ever for individuals to invest in stocks.

Additionally, investing in stocks does not require specialized knowledge or expertise. With the help of online research and financial advisors, anyone can learn the basics of investing in stocks and make informed decisions about their investments.

5. Potential for Growth and Wealth Creation

Lastly, investing in the best performing asset class of the past 20 years has the potential for wealth creation. By consistently investing in stocks over a long period of time, investors have the opportunity to build a substantial portfolio and grow their wealth.

Moreover, stocks offer the potential for compounding returns – where the returns earned from investments are reinvested, leading to even higher returns in the future. This makes stocks a powerful tool for creating long-term wealth.

In conclusion, the past 20 years have seen a remarkable performance from the stock market as an asset class. With its potential for higher returns, diversification, passive income, accessibility, and wealth creation, stocks have proven to be a great investment for individuals looking to grow their money over the long term. As with any investment, it is important to do thorough research and seek professional advice, but there is no denying the positive benefits of investing in the best performing asset class of the past two decades – stocks.