| Today’s uncertain markets may be discouraging you from buying right now, but this natural ebb and flow of the stock market and economy may present excellent long-term investment opportunities, as they often have in the past. While past performance does not guarantee future results, the following historical examples offer compelling reasons to open an account and buy stocks today.
Today’s Market: Bear Trap, Bull Run or Snail’s Pace?
Since short-term market movements have always been difficult to predict, you should focus on the long-term direction, which has been decidedly upward over time. As the chart shows, bear cycles have offered investors buying opportunities as subsequent bull cycles have averaged returns of more than 135% and lasted an average of 40 months over the last 53 years!
Source: Schwab.com. The securities markets are subject to the risks of fluctuating prices and the uncertainty of rates of return and yields inherent in investing. Past performance is no guarantee of future results.
Slow Growth or Real Recession?
No one will know if the economy’s in recession until we see today’s economic data many months from now. But if you wait too long and don’t invest until current economic conditions improve, you may miss out on gains when the market turns up. As the chart shows, historically, stocks have tended to rebound before the economy and climb to new highs over time.
Source: MSN MoneyCentral Investor and National Bureau if Economic Research. The securities markets are subject to the risks of fluctuating prices and the uncertainty of rates of return and yields inherent in investing. Past performance is no guarantee of future results.
More Interest Rate Cuts?
The Federal Reserve’s next move is another economic intangible that should not keep you from buying stocks today if you’re investing for the long-term. In fact, the Fed began cutting interest rates in January of this year to spur economic growth, which has often had positive effects on the stock market within just 3 to 12 months of the first rate cut.
Source: TheStreet.com's "Look at the Facts About Fed Eases," with data provided by Baseline.) The securities markets are subject to the risks of fluctuating prices and the uncertainty of rates of return and yields inherent in investing. Past performance is no guarantee of future results.
So don't delay another day because the sooner you start, the more time you'll have to potentially benefit from the long-term growth of stocks. At BUYandHOLD, you can open an account entirely online and buy stocks today!
If you’re not sure what to buy, BUYandHOLD has made it easier than ever to find stocks tailored for long-term investors.
|
