- Despite strong performance in the last decade, our research partners believe stocks could still have room to grow in the 2020s
- Investors with longer time horizons should consider investing in private markets
- The 2010s were dominated by Big Tech, but the next decade should be marked by new breakout sectors such as sustainable investing, genetic therapies, digital transformation and addressing water shortages
As the 2010s come to a close, our research partners recommend looking ahead to the opportunities that await in the 2020s and beyond.
Stocks have seen the best decade since the 1980s, with the US market up 245% since the end of 2009, the Nasdaq returning 325% and Apple, Microsoft, Alphabet as well as Amazon creating $3.5 trillion in value. It’s a tough act to follow, yet our research partners believe there’s still room for investments to grow.
Ironically, investors are often fearful of putting money to work when the stock market is at an all-time high. But, history tells us that investors should in fact be more willing to invest at an all-time high than during other periods. In fact, in the six months after any given record high, markets have returned an average of 4.7%, versus 4.2% at other times (based on S&P data since 1950).
Find out the best way to invest moving forward to capture future opportunities. For more insights, join us for the first UBS House View live conversation of the new decade, Thursday, January 2 at 1 p.m. ET.*
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