Most equities investors have enjoyed quite a lift in the value of their portfolios in the past 12 years.
Particularly in the last 2 years, price growth has been phenomenal. And while investment advisors and economists are wary of a stock market crash, long-term investors are feeling comfortable about the returns on their investments.
This positive long-term view might be the reason we haven’t seen a major downturn in the S&P, NASDAQ, and Dow Jones indices. The volatility in the markets reflecting great uncertainty caused by fiscal restraints, tightening monetary policy, geopolitical threats, and supply chain threats is worrisome.
With inflation eating away the value of cash, bonds becoming almost worthless due to rising interest rates, and buyers losing interest in the housing market, investors can pour funds into the US stock markets. Most forecasts of the stock market are gloomy with most predicting minimal growth.
Tough to Predict the Indexes
Market forces are often political and reactionary to events. So who can predict what the S&P, NASDAQ and Dow Jones will reach in 3 months, or 6 months, or 5 years and 10 year periods ahead?
Key things to consider that will make the US stock market viable for some time, is consumer demand from Millennials and Gen Z’s. Combine that with demand from high immigration numbers. And continuing low interest rates will help businesses afford to launch their growth and improve products for sale.
The future will involve goods production being brought back to the US.
This is forecasted to be a period of great technological innovation. The success of Bitcoin, Tesla, NVidia, Amazon, Apple, and others suggests technology is changing the economy and transforming how we live. AI and robotics are certainly predicted to bring change in the next 10 years, so picking these companies to invest in might guarantee a successful retirement portfolio.
This year with the tide having weakened somewhat, investors have found themselves having to pick the best stocks. And while oil stocks are certainly some of the best performers with very attractive P/E ratios and dividend payouts, the duration of their value is in question.
Oil industry analysts suggest oil will be in demand for decades, but with alternative energy sources (solar, wind, geothermal) growing slowly, it will erode demand for all fossil fuels at some point. Still, replacing natural gas as a heating fuel is not likely to happen. As demand falls, natural gas will be even cheaper than it is today.
Top Performing Sectors Last 6 Months:
S&P Energy 500 +37.4%
S&P 500 Utilities +16.6%
S&P 500 Consumer Staples +12.6%
S&P 500 Health Care +11.5%
Statistics coming out of the recession show us where demand is beginning to grow. Tech stocks are taking a beating yet many stock market advisors and gurus say tech is likely to rebound in the coming years. Right now they suggest the big tech stocks (Google, Amazon, Facebook, Netflix) are a good place to hedge a recession.
There are strong rumblings of a stock market crash just ahead and that would change the investment arena, tech stocks tend to roll with consumer spending and interest rates. After a Fed induced recession, the markets would revive and could be quite healthy.
Beyond the Recession
When recessions fade, interest rates are low giving tech stocks a boost. With the aging of so many around the world into the senior years, health care and bio pharma will be in big demand. Gen Z’s too will be starting families, buying homes and EVs along with appliances, clothing, and taking vacations. They’ll be a unique new generation and will command more buying power than most expect. Of course Millennials will be spending big on raising their kids who drink coca cola and visit Disney and other theme parks. Consumer staples will be big, but since this period won’t be booming, but rather just steady, online shopping is a sector to be invested in.
Investing in tech stocks on the S&P small cap index or Russell 2000 index might be a buy the dip opportunity leading to strong growth in the next 5 years.
If you’re looking beyond the 3 to 5 year period, to the 10 year stock market forecast, you may want to turn your attention to blockchain users and AI users. 5G telecommunications is expected to be a strong technology area too. Blockchain and AI may give financial companies huge advantages. In fact, AI stock forecast software is in vogue now and will only improve over time. AI stock forecasting firms such as FinBrain, Iknowfirst and Danel AI are worth a trial.
16 of the Best Stocks to Buy and Hold 10 Years
It’s not hard to project forward that those stocks which have done well in the past 5 year period may continue to keep and improve their price. Since there are no plans to regulate monopolies, many of these are the biggest international companies.
Stock Name Symbol Current Price
Coca Cola Cock $219
Intel INTC $46
Mastercard MA $347
Berkshire Hathaway BRK.B $352
Google/Alphabet GOOG $2576
Disney DIS $130
Apple AAPL $165
Amazon AMZN $3022
McDonalds MCD $250
Pfizer PFE $54
Johnson & Johnson JNJ $180
Tesla TSLA $976
Medtronic MDT $111
Salesforce CRM $195
Nvidia NVDA $219
Uber UBER $32
That’s a quick look at a stock forecast for the next 3 to 10 years, and predictions of some stocks that might be excellent long-term investments to fund your retirement years.
See more of the latest stats and stock market forecasts.
