Equity, in developed markets.
This might seem uncertain in the short term due to the current situation, but in the long term am confident (as can be), that large-cap equities (more U.S) will have growth in the long term.
Personally, for long term growth would go for S&P500 tracker, as its low cost and on average it returns 8.64% a year over a period of years.
Why the S&P?
Well it is an active set of stocks, look what it is its the 500 largest biggest companies in the U.S by way of market cap. If the aren’t the in the largest 500 they get dropped and someone will replace that stock. It is forever changing!
Does this stay they same?
No. In fact it changes rapidly with the times.
Here is graph, of the sectors, change in the S&P since 1969.
See that there are fewer industrial stocks and have declined sharply in the last 60 years. This is obsessively due to advancing economy and change in sectors and technology. Everything is becoming much more automated.
The point is its being constantly changing to keep up with times.
The S&P has also, grown after every bear market, and long term been one of the best investments that anyone could make.
Above is a 30 year return of the S and P 500, please notice there are ups and downs in the market but if you hold long term, you can get growth. After each down, it has been followed by an up in history, however, we can’t use that as a predictor of the future!
If you had invested $10,000 would now be worth, $149,895 in 30 years.
I would also argue that it’s diversified geographically for a simple demonstration look at where Amazon operates, it’s not restricted to the U.S it is in many other countries and is always looking to expand. Look at what it is diversifying in to, it has become a company to be feared if you have business and amazon is coming into your sector. They are now at a point where they can buy, set up, and keep costs down by doing it all in house!
For, me I see this as the only real option in a world of low-interest rates, high western property prices, and safe-haven assets, such as gold, just not being as stable as they use to be.
This is my long term plan for my investments, your situation is likely to be different and will need assessing before you invest. My aim is for growth, if you have 10 years and under left until you retire, please speak to me before investing.
If you want to talk to me about your portfolio, please use the chat in the bottom right corner and I can help you pick the right investments.
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