The 3 Best Stocks to Buy if You Have $500 to Spend There’s no question that we’re in a bear market. Whether you use the arbitrary “down 20%” rule of thumb or simply look at the price action, it’s clearly bear-market territory. However, bear markets can often spell opportunity, even for small investors. And even for investors who have only $500 to spend, there are options. What are the best stocks for $500? Before we talk about the stocks, investors must realize the long-term trend of the market . Since 1950, the SP 500 has delivered an annual gain roughly 80% of the years. While that span covers the last eight decades, the index also has given investors similar (or better) results over the last 20, 30, 40 and 50 years. So while we may be in the midst of a bear market now, we won’t be in one forever. Long-term investors who buy the shares of companies with solid balance sheets and strong cash flows now will be rewarded. With that in mind, let’s look at a few of the best stocks for $500. Ticker Company Current Price MSFT Microsoft $235 GOOGL, GOOG Alphabet $96.25,$96.83 PYPL PayPal $88 Best Stocks for $500: Microsoft (MSFT) Source: NYCStock | Shutterstock.com Microsoft (NASDAQ: MSFT ) has traded terribly so far this year and just made new 52-week lows this week.