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Pro: there’s no reason to ‘not’ invest in stocks right now

on Oct 31, 2022
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  • Bill Stone says investors should put their money to work here.
  • He remains bullish on "tech" despite the macro headwinds.
  • Stone likes Amazon stock in particular after the recent sell-off.

Volatility may continue to be the talk of the market in the coming months but that shouldn’t scare equity investors into not putting their money to work, says Bill Stone – the Chief Investment Officer at the Glenview Trust Company.

Why is he bullish on the stock market?

S&P 500 has recovered about 9.0% in less than a month. But Stone continues to dub the current valuations “attractive” for the long-term investors.

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He’s focused more on the fact that the benchmark index is still lingering about 20% down versus the start of the year. On CNBC’s “Worldwide Exchange”, Stone said:

I won’t be as aggressive as I would’ve been about 9.0% ago. But we’re still down close to 20%. Anytime you’re down that much off the highs, historically, it’s worked out in terms of forward returns eventually showing up being better than average.

If the market goes back down, he added, investors should “dollar cost average” to strengthen their portfolio for the long term.

Stone finds ‘tech’ a suitable investment

Last week, Invezz reported the U.S. economy to have kept resilient in the third quarter despite the aggressive rate hikes.

Then, of course, consumer prices are still up over 8.0% on a year-over-year basis, which suggests the U.S. Federal Reserve is unlikely to go slow on rates anytime soon. But none of that is enough to make Stone avoid investing in “tech”.

I don’t think there’s any reason to stop [investing in stocks]. I still think stocks give you the most attractive risk-reward over the long run. I’d probably be fishing a bit in that technology pool that’s gotten hit.

One of the names he’s bullish on is Amazon.com Inc (NASDAQ: AMZN), especially after the sell-off following its quarterly update last week. The tech behemoth, he’s convinced, will stand tall in the face of a recession.

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