Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Don't wait for interest rates to fall before buying stocks: O'Leary

Dec 18, 2023 - markets.businessinsider.com
Kevin O'Leary, a host of "Shark Tank" and chairman of O'Leary Funds, has advised investors to buy stocks now instead of waiting for interest rates to fall. He argued that timing the market is impossible and that investors risk missing out on significant returns if they wait. He cited the recent example of the S&P 500's nearly 3% rise in a week, and the Dow Jones Industrial Average reaching a record high, as evidence of the potential gains that can be made.

O'Leary also suggested that fears of the Federal Reserve's benchmark rate hitting 6% have subsided, and that investors are optimistic that Fed Chair Jerome Powell has avoided a recession. He compared the current market situation to the peak of a rollercoaster, with investors anxiously awaiting a drop in rates. Despite ongoing market concerns, O'Leary predicted that investors will ultimately overlook these and continue to drive asset prices up.

Key takeaways:

  • Kevin O'Leary advises investors to own stocks now instead of waiting for interest rates to fall, warning that they risk missing out on major gains.
  • He believes that trying to time the market is a mistake and that investors should maintain a long position in equities.
  • The S&P 500 and Dow Jones Industrial Average have seen significant gains this year, with the latter closing at a record high on Friday.
  • O'Leary suggests that investors are confident that the Federal Reserve has avoided a recession and that interest rates will not hit 6%.
View Full Article

Comments (0)

Be the first to comment!