U.S. stocks hit lowest since 2007

The difference between the return on S&P 500 stocks and US 10-year bonds, known as the risk premium, has narrowed to historically low levels, according to BlackRock research. The premium is currently around 1.59 percentage points, well below the average since 2008 but close to the historical average. BlackRock chief investment officer Tony DeSpirito believes this offers an opportunity to invest in bonds. Some experts advise investors to look for companies with stable margins and strong earnings growth, while avoiding overvalued companies. Rob Arnott, founder and head of Research Affiliates, advises looking at value stocks, which are a profitable investment today.