Is Now a Good Time to Buy Stocks?

Investors should have a time horizon of at least five to 10 years. According to David Kass, finance professor at the University of Maryland, “The S&P 500 (including dividends) has achieved a positive return in 80% of the years from 1942 through 2019.” During the last 78 years, the stock market rewarded investors with more than a 9% average annual return. Interest rates are a strong determinant of stock prices. Currently, long- and short-term interest rates are at historical lows and are expected to remain so for the next several years. Since fixed assets, like short- and long-term bonds, offer negligible yields, stock market investments are an attractive alternative, Kass says. Just remember to maintain an asset allocation in line with your risk-tolerance level.