Think the Stock Market Is Too Expensive? This Historical Chart Might Change Your Mind.
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Solid returns have come even with bumps in the road.
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2 min read
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investment
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July 27, 2025
06:07 AM
The Motley Fool
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What the data shows is Is now the right time to buy stocks (something worth watching)
Meanwhile, It's a question that's been asked countless times, and whenever I field it, my answer is the same: "Yes. " That might seem crazy, but I assure you, it isn't
Meanwhile, Here's why: Over the long term, in a benchmark stock index the S&P 500 (^GSPC 0. 40%) has always ven to be a winning strategy -- even if someone's timing is horrible (something worth watching)
Still don't believe me
Nevertheless, Then take a look at this chart: ^SPX data by YCharts This's the S&P 500 dating back to 1957, when the index expanded to 500 companies and acquired its current name
Since then, it has increased by an astounding 14,000%
That works out to a compound annual growth rate (CAGR) of 7. 5% -- and that's before accounting for dividend payments
During that stretch, there have been many corrections, several bear, and 10 full-blown recessions
Additionally, And yet, no matter when someone bought, they would have made money -- if they had stayed invested in the market (which is quite significant), given the current landscape
Additionally, Image source: Getty Images
There's a lesson here: Timing the market is folly
Many fortunes have been made by people claiming to know when the right time to buy -- or sell
But far more money has been left on the table by investors trying to time the top or the bottom, in light of current trends
Furthermore, On the other hand, The best advice is the simplest: Avoid trying to predict price movements in the short term
Instead, what you can and invest for the long term
Ignore the headlines -- particularly when the market is going down
Nevertheless, However, And whenever you have doubts, glance at the chart above and remember: Stay patient, hold your stocks for the long term, and you'll come out a winner.
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