Is this a good time to buy stocks?
user
That depends on what’s on your mind.
assistant
Is the price of stocks likely to go up a lot in the next few years?
user
Stocks have increased quite a bit since October, but this is very unusual and not necessarily a sign that the market is going up in the near future. It’s also possible that the rise in prices was caused by investors trying to sell before the tax changes in 2018.
assistant
Do you have any information about what stocks might be good to invest in?
user
There is a good chance that the overall stock market is going to continue to rise in the next few years, but it’s unlikely that any specific stocks will rise sharply. Over the past ten years, the S&P 500 (a common stock index) has increased by about 20 percent per year. The government and economists predict that this rate of growth will continue for the foreseeable future, although the predicted rates are a lot less than 20 percent. On the other hand, I’ve found that most stock mutual funds do well in the long term, with many fund managers meeting or beating the average market returns for each year that they were held. One thing that I have found is that if you invest in a diversified fund you can get a better long-term return than if you invest in a fund that only invests in one specific type of stock.
assistant
Is this a good time to buy stocks?
user
That depends on what’s on your mind.
assistant
Is the price of stocks likely to go up a lot in the next few years?
user
Stocks have increased quite a bit since October, but this is very unusual and not necessarily a sign that the market is going up in the near future. It’s also possible that the rise in prices was caused by investors trying to sell before the tax changes in 2018.
assistant
Do you have any information about what stocks might be good to invest in?
user
All companies would be affected by the changes in the tax rate in 2018, so the best advice is to do some research about the businesses involved in each stock and try to figure out which companies might do well under the new tax conditions.
assistant
Is this a good time to buy stocks?