Visualizing the Key Investment Theme of Each Decade Over modern history, a key investment theme has broadly characterized each decade.
In each case, a particular asset class, sector, or region captivated investors for an extended period, driving returns and outperforming the rest of the market.
This graphic shows 70 years of key investment themes, based on analysis from Ruchir Sharma of Morgan Stanley Investment Management via NS Capital.
Investment Themes by Decade These decade-defining themes are often the product of a confluence of factors, including the macroeconomic environment, geopolitics, monetary policy, or other structural shifts like technological disruption.
Here are the central investment themes since the 1950s, each with at least 400% cumulative returns over each period:
Markets, over more than 120 years, have experienced a long-term advance despite war, recession, oil shocks, political assassinations, and much more.
Military conflict
Military conflicts test investors’ resolve to stick to their investment plan, but history suggests these events have not derailed the long-term growth of markets.
Differences from 1973
The market fall after the Yom Kippur War in 1973 may be concerning to investors given the parallels to today’s conflict, but there are very significant differences.
Posted by Timothy Ross on October 7, 2022 at 9:48am
Some great links provided by CI Global Investments
Stick to Your Plan Most stock market gains are achieved shortly after a bear market
This chart shows how major indices performed from the bottom of the 08/09 Financial Crises, March 9, 2009, over the next 3+ years. You can see once a bottom had been reached the market reacts swiftly and positively. It’s important to stick to the plan you and your advisor have designed as leaving the market could cause you to miss out on large gains. Missing out on large gains makes it very difficult to break-even and achieve the long-term return required to meet your financial goals.
It is nearly impossible to predict what class will generate the highest returns in any given year. Investors benefit from diversification and reduce their risk by allocating to a variety of asset classes. A strong financial plan will incorporate investments into different asset classes that react differently to ensure investors reduce their overall risk.
We have been flooded with commentary for some time now, today is the day the USA go to vote, the big wrap up. Thought I would share some perspective form some of our sources that study the market and economic implications of th three possible outcomes.
"Regardless of who wins, we expect that the U.S. and global economy will have a strong recovery next year and short-term interest rates will remain low."
For IA Clarington Investments report click on the link below , it drills down , I have clipped the initial highlights for you below.
Scenario 1: Biden wins
What is the impact of a Biden presidency in the short and long term?
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Regardless of who wins, we expect that the U.S. and global economy will have a strong recovery next year and short-term interest rates will remain low.
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Global trade sentiment would improve.
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A corporate tax increase could have a negative impact on earnings power and the market in general.
Scenario 2: Trump wins
What is the impact of a Trump presidency in the short and long term?
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We expect economic growth to accelerate at a faster pace under a Trump administration.
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We are not expecting a large tax cut.
Scenario 3: No clear result
What is the potential impact of a no-decision on election night?
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We believe the risk of not having a result for an extended period is being overplayed in the media.
One might be wondering what are the current market values ? Click below for the lastest weekly update that TD Wealth has compiled.
Some highlights you can read, YTD Oil is down 41.4% , Canadian Markets down in the -9% range, US -4 to + 26% range, Europe -7 to -26 % range, Bonds 7 to 10 % range, Canada Government Bonds 1.25% , Housing Starts are down a bit (10% range) Unemployment @ 7.9% vs 3.5% year end 2019 .
As I glean some more, I will add them here. No doubt we are driving on a broken road, the pavement is a little bumpy.
- able to talk about the things that really matter the most
- like, why your wealth matters
Reflecting ”it’s why we help families achieve life’s major goals”
#2 Network Access
- I have lived in this region for most of my adult life, I do have a large network of contacts in various areas that can benefit our clients should a need come up, we can connect you
- excelling in client segmentation is the hallmark of top advisors. Your able to demonstrate your core values in your stories that people can relate to. This brings value to the relationship.
We have developed relationships with Family’s that have businesses. Those that have an entrepreneurial insight that in many ways flows from our tax business. We have a lot of legacy clients and referrals from this foundation built over the last thirty years. We need to get better at telling our story. We have reduced risk by providing SRI practices in our investment solutions and portfolios that use pension management asset allocation processes. Stable returns with less risk. All this reduces risk, providing confidence and word of mouth opportunities to share what we have done, all within a confidential environment. Our team continues to grow and specialize within the different areas we discover are important to Achieve Life’s Major Goals.
Great article that speaks to the regularness of what we are experiencing this year.
Everyone’s situation is different and how we process risk concepts is different. We often utilize this strategy to smooth out the risk so our clients do not worry during troubled times. ( from a media perspective)
