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This bank crunched 200 years of data to show why investors should stick with stocks over the long term

1. Stocks underperformed cash 0.8% of the time over 25 years. 2. High valuations signal potential weak returns for stocks. 3. S&P 500's P/E ratio recently topped 23, highest in years. 4. Negative equity returns occurred 13.6% of five-year periods. 5. Investor concerns about market risks influence stock performance.

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FAQ

Why Bearish?

High valuations and low dividend yields suggest limited future gains, reminiscent of 1990 Japan.

How important is it?

High valuations and poor yield conditions influence major market indices like S&P 500.

Why Short Term?

Market reactions to high P/E ratios are immediate, affecting investor sentiment swiftly.

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