SlideShare a Scribd company logo
1 of 19
Risk-adjusted
Investments for the
Next Decade
By www.ProfitableInvestingTips.com
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
Interest rates are edging up. For the time
being, stocks are staying ahead of bonds
in the investment war. Historically, stocks
earn 3.3% more than bonds over time.
However, investors have gotten used to a
much better ROI in the stock market over
the last decade.
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
We are looking at risk-adjusted investments
for the next decade as interest rates go up
and the stock market adjusts. Many
investors have chosen to invest by buying
ETFs that track the S&P 500. This puts
them at risk in a stock market that will
perform differently over the next decade.
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
Stock Market Returns Looking Back
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
When the stock market is roaring upward
like it did in the last decade or if plunging
downward like in 2009, many investors
forget that returns over the long term are
predictable. With exceptionally low interest
rates, the stock market has done very well
from 2010 through 2020 even with the
Covid-19 pandemic. The S&P 500 has
returned as much as 32% in a single year.
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
However, since the inception of the S&P 500
in 1957, returns have averaged 8%
according to Investopedia. However, that
average return since the S&P 500 went to
500 stocks includes lots of ups and downs.
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
The point for investors is not to get lulled
into a sense of complacency because of
the uniquely high stock market returns of
the last decade during with interest rates
have been extremely low.
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
Stock Market Returns Going Forward
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
Market Watch published a useful article about the
next decade for stocks.
Though the U.S. stock market may win its current
battle with the bond market, it could lose the
war. Based on a simple regression model built
on the historical relationship between stocks,
bonds, interest rates, and inflation, investors can
expect stocks to perform about 3.3 percentage
points better than bonds annually over the
coming decade. But that doesn’t mean equities
will produce a return that is anything close to
their historical average.
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
When the dot com bubble was ready to
burst, the story was that investing had
changed and that the market would go up
forever. When the bubble burst, S&P 500
returns fell to negative 21% for a couple of
years. That would be a real shock today
for folks who have gotten used to making
31% and 18% in 2019 and 2020.
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
The risks going forward are these. Lots of
zombie companies accustomed to low
interest rates will go out of business. Their
stocks will be worthless and their creditors
will be holding worthless slips of paper.
The market as a whole will correct
downwards and then proceed at a slower
pace than during the last decade. But,
does this apply to all stocks?
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
Risk-adjusted Investments for the Next
Decade
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
While travel and hospitality stocks took a hit during
2020, tech giants flourished as business
continued with people working from home. Bank
of America bought 30,000 laptops with all of the
necessary security software for home-based
workers. Multiply this by companies across the
country and you have Apple, Microsoft and the
rest doing well despite the economy doing its
worst since the Great Depression. Amazon
prospered and hired lots of workers while brick
and mortar stores went out of business.
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
We have written about adapting your
investments to the Biden agenda and push
to revamp American infrastructure. The
“low hanging fruit” we mentioned in our
most-recent infrastructure article have to
do with companies that provide aggregate,
steel, and equipment rentals, all of which
will prosper when American rebuilds its
roads, bridges, ports, mass transit, and
airports.
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
But, a huge concern today is America’s
dependence on international supply chains
for materials critical to our economy and
defense. As such, we expect to see the
high tech sector continue to prosper as the
USA seeks to reassert its technological
dominance.
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
The average S&P 500 ROI will probably fall
as interest rates go up but individual S&P
sectors and selected individual stocks will
be excellent risk-adjusted investments for
the next decade.
https://profitableinvestingtips.com/investi
ng-trading/risk-adjusted-investments-for-
the-next-decade
For more insights and useful information
about investments and investing, visit
www.ProfitableInvestingTips.com.

More Related Content

Similar to Risk-adjusted Investments for the Next Decade

The Advisory_Sept2016
The Advisory_Sept2016The Advisory_Sept2016
The Advisory_Sept2016
Jim Tyson
 
2016Q3 SCFG Commentary with Snapshot
2016Q3 SCFG Commentary with Snapshot2016Q3 SCFG Commentary with Snapshot
2016Q3 SCFG Commentary with Snapshot
Drew Beja
 
Nov 1999_SG Europe Top 20 Fund Report_SGAM
Nov 1999_SG Europe Top 20  Fund Report_SGAMNov 1999_SG Europe Top 20  Fund Report_SGAM
Nov 1999_SG Europe Top 20 Fund Report_SGAM
Alfred Park
 
Aussie Real-estate buying price (no debt) to return
Aussie Real-estate buying price (no debt) to returnAussie Real-estate buying price (no debt) to return
Aussie Real-estate buying price (no debt) to return
Petros Perimenis
 
SIA Funds: de Value Investing a Strategic Value
SIA Funds: de Value Investing a Strategic ValueSIA Funds: de Value Investing a Strategic Value
SIA Funds: de Value Investing a Strategic Value
ValueSchool
 
US Venture Capital
US Venture CapitalUS Venture Capital
US Venture Capital
Columbia
 
Fiscal Cliff Stock Worries
 Fiscal Cliff Stock Worries Fiscal Cliff Stock Worries
Fiscal Cliff Stock Worries
InvestingTips
 
Southern New Hampshire University – MBA 640.docx
Southern New Hampshire University – MBA 640.docxSouthern New Hampshire University – MBA 640.docx
Southern New Hampshire University – MBA 640.docx
williame8
 
Right Sizing The US VC Environ061009202
Right Sizing The US VC Environ061009202Right Sizing The US VC Environ061009202
Right Sizing The US VC Environ061009202
Kristin DePlatchett
 
Volatility Ups and Downs
Volatility Ups and DownsVolatility Ups and Downs
Volatility Ups and Downs
dmauro6
 

Similar to Risk-adjusted Investments for the Next Decade (20)

The Advisory_Sept2016
The Advisory_Sept2016The Advisory_Sept2016
The Advisory_Sept2016
 
The Global Cybersecurity Market 2013- 2023
The Global Cybersecurity Market 2013- 2023The Global Cybersecurity Market 2013- 2023
The Global Cybersecurity Market 2013- 2023
 
Exchange Traded Funds
Exchange Traded FundsExchange Traded Funds
Exchange Traded Funds
 
Global Insight
Global Insight Global Insight
Global Insight
 
2016Q3 SCFG Commentary with Snapshot
2016Q3 SCFG Commentary with Snapshot2016Q3 SCFG Commentary with Snapshot
2016Q3 SCFG Commentary with Snapshot
 
Target Retirement Income Planning
Target Retirement Income PlanningTarget Retirement Income Planning
Target Retirement Income Planning
 
Nov 1999_SG Europe Top 20 Fund Report_SGAM
Nov 1999_SG Europe Top 20  Fund Report_SGAMNov 1999_SG Europe Top 20  Fund Report_SGAM
Nov 1999_SG Europe Top 20 Fund Report_SGAM
 
Aussie Real-estate buying price (no debt) to return
Aussie Real-estate buying price (no debt) to returnAussie Real-estate buying price (no debt) to return
Aussie Real-estate buying price (no debt) to return
 
ETF developments in 2017 and beyond ft adviser
ETF developments in 2017 and beyond   ft adviserETF developments in 2017 and beyond   ft adviser
ETF developments in 2017 and beyond ft adviser
 
SIA Funds: de Value Investing a Strategic Value
SIA Funds: de Value Investing a Strategic ValueSIA Funds: de Value Investing a Strategic Value
SIA Funds: de Value Investing a Strategic Value
 
US Venture Capital
US Venture CapitalUS Venture Capital
US Venture Capital
 
Fiscal Cliff Stock Worries
 Fiscal Cliff Stock Worries Fiscal Cliff Stock Worries
Fiscal Cliff Stock Worries
 
Prudent approach to bond investing part 2
Prudent approach to bond investing part 2Prudent approach to bond investing part 2
Prudent approach to bond investing part 2
 
Southern New Hampshire University – MBA 640.docx
Southern New Hampshire University – MBA 640.docxSouthern New Hampshire University – MBA 640.docx
Southern New Hampshire University – MBA 640.docx
 
Ppm2
Ppm2Ppm2
Ppm2
 
Ppm2
Ppm2Ppm2
Ppm2
 
Covid-19 Era Investment Opportunities
Covid-19 Era Investment OpportunitiesCovid-19 Era Investment Opportunities
Covid-19 Era Investment Opportunities
 
Right Sizing The US VC Environ061009202
Right Sizing The US VC Environ061009202Right Sizing The US VC Environ061009202
Right Sizing The US VC Environ061009202
 
Ep. #19: October 2019 - Da Real Estate Braddahs LIVE​
Ep. #19: October 2019 - Da Real Estate Braddahs LIVE​Ep. #19: October 2019 - Da Real Estate Braddahs LIVE​
Ep. #19: October 2019 - Da Real Estate Braddahs LIVE​
 
Volatility Ups and Downs
Volatility Ups and DownsVolatility Ups and Downs
Volatility Ups and Downs
 

More from InvestingTips

More from InvestingTips (20)

When to Buy and When to Sell Bitcoin
When to Buy and When to Sell BitcoinWhen to Buy and When to Sell Bitcoin
When to Buy and When to Sell Bitcoin
 
Dangers of Investment Leverage
Dangers of Investment LeverageDangers of Investment Leverage
Dangers of Investment Leverage
 
Are Private Digital Tokens On Their Way Out?
Are Private Digital Tokens On Their Way Out?Are Private Digital Tokens On Their Way Out?
Are Private Digital Tokens On Their Way Out?
 
When Should Investors Trade Options?
When Should Investors Trade Options?When Should Investors Trade Options?
When Should Investors Trade Options?
 
Will Northrup Grumman Go Into Commercial Aviation?
Will Northrup Grumman Go Into Commercial Aviation?Will Northrup Grumman Go Into Commercial Aviation?
Will Northrup Grumman Go Into Commercial Aviation?
 
How Would a Crypto Privacy Pool Work?
How Would a Crypto Privacy Pool Work?How Would a Crypto Privacy Pool Work?
How Would a Crypto Privacy Pool Work?
 
How CFTC Rules Protected a Crypto Business
How CFTC Rules Protected a Crypto BusinessHow CFTC Rules Protected a Crypto Business
How CFTC Rules Protected a Crypto Business
 
Blockchain Tech in the Wake of Crypto Winter
Blockchain Tech in the Wake of Crypto WinterBlockchain Tech in the Wake of Crypto Winter
Blockchain Tech in the Wake of Crypto Winter
 
Economic and Investment Risks for 2024
Economic and Investment Risks for 2024Economic and Investment Risks for 2024
Economic and Investment Risks for 2024
 
Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?
 
Bitcoin Viability As a Long Term Investment
Bitcoin Viability As a Long Term InvestmentBitcoin Viability As a Long Term Investment
Bitcoin Viability As a Long Term Investment
 
Bitcoin Versus NFTs
Bitcoin Versus NFTsBitcoin Versus NFTs
Bitcoin Versus NFTs
 
Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?
 
Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?
 
Should You Diversify Your Crypto Investments?
Should You Diversify Your Crypto Investments?Should You Diversify Your Crypto Investments?
Should You Diversify Your Crypto Investments?
 
Obligations of a Crypto Business
Obligations of a Crypto BusinessObligations of a Crypto Business
Obligations of a Crypto Business
 
Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?
 
Are Smart Contracts Legal?
Are Smart Contracts Legal?Are Smart Contracts Legal?
Are Smart Contracts Legal?
 
Can the Law Fix Crypto’s Problems?
Can the Law Fix Crypto’s Problems?Can the Law Fix Crypto’s Problems?
Can the Law Fix Crypto’s Problems?
 
Apple as a Model for Crypto’s Future
Apple as a Model for Crypto’s FutureApple as a Model for Crypto’s Future
Apple as a Model for Crypto’s Future
 

Recently uploaded

CaseThe legal victory in the turmeric patent case safeguarded traditional kno...
CaseThe legal victory in the turmeric patent case safeguarded traditional kno...CaseThe legal victory in the turmeric patent case safeguarded traditional kno...
CaseThe legal victory in the turmeric patent case safeguarded traditional kno...
alpha012343210
 
World Politics as Black & White Iran and Israel or how people fall victims of...
World Politics as Black & White Iran and Israel or how people fall victims of...World Politics as Black & White Iran and Israel or how people fall victims of...
World Politics as Black & White Iran and Israel or how people fall victims of...
Muhammad Shamsaddin Megalommatis
 
R$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatórios
R$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatóriosR$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatórios
R$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatórios
Maurílio Júnior
 
PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...
PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...
PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...
Faga1939
 

Recently uploaded (17)

Embed-4-1-1.pdf vm ;sdkp[kdp[kpdkpodp;p;j
Embed-4-1-1.pdf vm ;sdkp[kdp[kpdkpodp;p;jEmbed-4-1-1.pdf vm ;sdkp[kdp[kpdkpodp;p;j
Embed-4-1-1.pdf vm ;sdkp[kdp[kpdkpodp;p;j
 
21052024_First India Newspaper Jaipur.pdf
21052024_First India Newspaper Jaipur.pdf21052024_First India Newspaper Jaipur.pdf
21052024_First India Newspaper Jaipur.pdf
 
19052024_First India Newspaper Jaipur.pdf
19052024_First India Newspaper Jaipur.pdf19052024_First India Newspaper Jaipur.pdf
19052024_First India Newspaper Jaipur.pdf
 
CaseThe legal victory in the turmeric patent case safeguarded traditional kno...
CaseThe legal victory in the turmeric patent case safeguarded traditional kno...CaseThe legal victory in the turmeric patent case safeguarded traditional kno...
CaseThe legal victory in the turmeric patent case safeguarded traditional kno...
 
World Politics as Black & White Iran and Israel or how people fall victims of...
World Politics as Black & White Iran and Israel or how people fall victims of...World Politics as Black & White Iran and Israel or how people fall victims of...
World Politics as Black & White Iran and Israel or how people fall victims of...
 
Minnesota Timberwolves Bring Ya Ass T Shirt
Minnesota Timberwolves Bring Ya Ass T ShirtMinnesota Timberwolves Bring Ya Ass T Shirt
Minnesota Timberwolves Bring Ya Ass T Shirt
 
May 2024 - Crypto Market Report_FINAL.pdf
May 2024 - Crypto Market Report_FINAL.pdfMay 2024 - Crypto Market Report_FINAL.pdf
May 2024 - Crypto Market Report_FINAL.pdf
 
Embed-3-1-1.pdf The ECI direction on April 2, 2024 can be read here:
Embed-3-1-1.pdf  The ECI direction on April 2, 2024 can be read here:Embed-3-1-1.pdf  The ECI direction on April 2, 2024 can be read here:
Embed-3-1-1.pdf The ECI direction on April 2, 2024 can be read here:
 
Encore portal Project PPt on live portal
Encore portal Project PPt on live portalEncore portal Project PPt on live portal
Encore portal Project PPt on live portal
 
israeil_bnetaniahou_panel_report_eng.pdf
israeil_bnetaniahou_panel_report_eng.pdfisraeil_bnetaniahou_panel_report_eng.pdf
israeil_bnetaniahou_panel_report_eng.pdf
 
Have A Complimentary Cheat Sheet, On Us!!!
Have A Complimentary Cheat Sheet, On Us!!!Have A Complimentary Cheat Sheet, On Us!!!
Have A Complimentary Cheat Sheet, On Us!!!
 
Positive Effects Of Social Media On Mental Health
Positive Effects Of Social Media On Mental HealthPositive Effects Of Social Media On Mental Health
Positive Effects Of Social Media On Mental Health
 
Meta_AI_ads_investigation.pdfldoljjwejolejolol
Meta_AI_ads_investigation.pdfldoljjwejolejololMeta_AI_ads_investigation.pdfldoljjwejolejolol
Meta_AI_ads_investigation.pdfldoljjwejolejolol
 
Embed-4-3 (1).pdf cvxx'f['df[p'lf][l][fl][fl][][l[
Embed-4-3 (1).pdf cvxx'f['df[p'lf][l][fl][fl][][l[Embed-4-3 (1).pdf cvxx'f['df[p'lf][l][fl][fl][][l[
Embed-4-3 (1).pdf cvxx'f['df[p'lf][l][fl][fl][][l[
 
R$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatórios
R$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatóriosR$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatórios
R$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatórios
 
PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...
PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...
PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...
 
Dominican American Coalition PAC Executive Summary
Dominican American Coalition PAC Executive SummaryDominican American Coalition PAC Executive Summary
Dominican American Coalition PAC Executive Summary
 

Risk-adjusted Investments for the Next Decade