Although those who wait long enough will eventually recoup losses on a diversified portfolio of stocks, buying stocks at or below their historical valuation is the best way to guarantee superior returns.
Nevertheless, there are persuasive reasons why the valuation of the market may in the future rise above the historical average.
This will lead to lower long-term returns on stocks but higher returns during the transition to a higher valuation.
Whether that transition takes place or not, stocks remain the most attractive asset class for long-term investors.
Stocks for the Long Run
by Jeremy Siegel