Financial Advisor: Invest in stock market now

Folks with investments in the stock market are soaring high. The Dow Jones Industrial Average closed Monday at 14447.29. That figure is a record high, 120 percent above where the market sat just four years ago.

So is it too late to buy in, and if you are already invested, is it too early to sell?

Dr. Aaron Schavey, an associate professor of finance at Bethel College says despite the risk factor, history maintains there is no better method of investment than the stock market.

"The market is going to give you the best return. It's going to go up and it's going to go down, but as long as you're in the market, you are going to get the return of the market,” professor Schavey said.

For now the outlook looks strong, without the typical threats of rising inflation and high interest rates.

What's more, on Friday the U.S. Labor Department announced February unemployment rates dipped to 7.7 percent, the lowest level since Dec. 2008.

"I think a lot of people are attracted to the United States. I think the Federal Reserve putting a lot of money into the economy and keeping interest rates low has made the economy very attractive,” professor Schavey added.

According to the Daytona Beach News-Journal, the last 11 stock market surges dating back to World War II lasted 59 months on average. Using that statistic, the current expansion is middle aged, leading experts to recommend acting fast.

"The interest rate on a savings account or CD is less than one percent at a lot of banks. Historically the stock market has averaged about 10 to 12 percent a year. So if you want the greatest amount of return, the stock market is the place to go,” professor Schavey concluded.

Schavey also recommends buying into an index fund. It’s essentially a well-diversified mutual fund that generally provides higher market returns without costing you an arm and a leg.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
WNDU - Channel 16 54516 State Road 933 South Bend, IN 46637 Front Desk: 574-284-3000 Newsroom: 574-284-3016 Email: newscenter16@wndu.com
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 197225891 - wndu.com/a?a=197225891