AB - AllianceBernstein highlights 10 reasons to stay invested in equities

Wall Street has felt some strong losses in 2022, but AllianceBernstein ( NYSE: AB ) stays bullish and outlines 10 reasons for investors to remain invested in the equity market.

Despite the fact that the S&P 500 ( SP500 ), Dow ( DJI ), and Nasdaq Composite ( COMP.IND ) trade well into the red in 2022 and the fact that markets face a wall of issues that include inflation, rising rates, recession fears, geopolitical tensions, and a growing future of uncertainty, AB believes investors should stay the course.

AllianceBernstein stated in a research note on Monday that “despite recent market disruptions, there are still good reasons to stay invested in stocks.”

See below the 10 reasons AB believes that market participants should remain invested inside of the equity marketplace:

1. Equity markets generally rise over time.

2. For long-term investors, equities are still the best way to grow capital.

3. Interest rates are still relatively low, while stocks appear reasonably priced.

4. Despite pressure on valuations, earnings have held up so far.

5. Earnings declines in high-inflation environments have historically been mild.

6. A focus on quality companies can help buffer against the effects of inflation.

7. Stocks have historically performed well in periods of moderate inflation.

8. Today’s light positioning in equities could provide future technical support.

9. US stock buybacks have continued at a breakneck pace.

10. Staying the course is a proven strategy.

In other news, the global asset manager also recently outlined in a separate research note that it remains cautious about the state of the U.S. economy but sees potential opportunities in growth stocks and high-yield U.S. debt.

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