Market Outlook: 3 Reasons Long-Term Investors Should Be Optimistic

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Short-term volatility should always be expected, but long-term investors have several reasons to be optimistic about the market outlook.

... [+]It seems like bad news is inescapable these days. For much of last year, even good news about the economy was bad news for markets. Yes, 2022 was ayear for financial markets. In fact, it was the worst year ever for bonds and the seventh worst for U.S. stocks on record. Although we're still not out of the woods with inflation or the Federal Reserve's historic rate-rising campaign, long-term investors have several reasons to be optimistic about the market outlook.

But over the long-term, historical data paints a much better picture about the resiliency of markets.U.S. stocks may have an average return of 10% per year, but the S&P 500 has only ended a year with a 10% return once. The distribution of calendar year returns skews very positive, with over 37% of years ending with a return north of 20%.

 

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MarketOutlook is looking bright! Here are 3 reasons why long-term investors should be optimistic: 1) Continued economic growth, 2) Rising corporate earnings, and 3) Favorable interest rates. Keep an eye on these factors and stay the course for long-term gains! Investing

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