Nothing goes up forever.
Likewise, the stock market rhythm of boom and bust creates a tendency for long-term breaks after many years of gains.
When we step back and examine a stock market chart, we may observe multi-year periods of both strong gains and stagnation:
As you know, we have recently experienced many years of gains.
Robert Schiller of Goldman Sachs considers 5 factors to forecast stock market returns. Based on his research, he believes we might experience another ten-yearperiodin which the S&P500 averages only 3%.
After many years of strong performance, it seems within the realm of possibility for annualized returns to eventually slow down:
Source: Robert Shiller, Goldman Sachs Global Investment Research
Stock market history teaches us that we may indeed experience something similar happening again. So how can we make money in periods when stock markets stop rising?
Our “pension-style” portfolios combine multiple strategies that work in diverse and even challenging market scenarios, including:
- Global funds – a wider set of opportunities
- Alternative funds – special opportunities vs market direction
- Hedge-type funds – extra tools for playing both offence and defence
- Multi-style funds- participation in whatever is working
- Quantitative funds – active, rules-based models
- Premium funds – profit from waiting to invest
- Theme funds – identifying new trends and innovation
- Tactical funds – adjusting to market swings
- Dividend funds – growing cash flow through market cycles
- Balanced funds – changing asset allocation based on markets
While we never know the future, we must prepare for all outcomes. These strategies can manage volatility and can even make money during periods when markets stagnate for a long period of time.
Are you concerned about what happens when markets eventually turn?
Contact us for more information. Ask how our diverse stable of funds can benefit your portfolio!
