AARP Finance - Now is the time to start buying stocks according to experts.
"If you buy now and wake up in 10 years, you'll probably get a return around the historic average," said Yale economist Robert Shiller. In the near term, however, Shiller - who correctly predicted the implosion of the stock-market and real-estate bubbles - is more cautious. "There is a substantial risk that with all this economic turmoil, stocks will fall far lower," he warned.
The key information for AARP members is to look long term. Many stocks have good Price over Earnings ratios or earnings yield of 15.7 which is good for a long term profitable return.
Research by economist and hedge fund manager Cliff Asness shows that buying in at a P/E usually leads to poor returns, while grabbing stocks at a low P/E - less than 16 is a reliable route to riches.
Members of AARP will find that they will get around a 9% return when adjusted for inflation, which is better that the last 10 years average, however to get this level of return you will also need a dividend yield of 4.5%.
An alternative way of earning a good return is for AARP members to set up a home based business using a model/plan developed by Economist Dr Raymond Jewel at Tomorrows home business who holds weekly online presentations at http://www.tomorrowshomebusiness.com/Conference_Room.html