The S&P 500 index has seen significant gains in the past decade, outperforming expectations with an annualized total return of 10%. However, with the CAPE ratio currently at 40.9, the market’s valuation is very high, raising concerns for investors about potential negative returns in the next decade.

Research suggests the S&P 500’s annualized returns over the next decade could be negative, leading to hesitancy among investors. Despite this outlook, investing in the stock market in 2026 is still seen as a favorable option for those with a long-term time horizon.

The Motley Fool Stock Advisor team has identified the 10 best stocks to buy right now, but the S&P 500 Index did not make the list. These recommended stocks have the potential to generate significant returns in the coming years, outperforming the market average by a wide margin.

Read more at Yahoo Finance: The Stock Market Is Doing Something It Has Only Done 1 Time Since 1871. Should You Be Worried for 2026?