2020 and Beyond: What’s in Store for Investors in the New Decade?
As we usher in a new decade, it’s a good time to reflect on the past decade, and it’s also natural to wonder what’s to come in the next ten years.
For over a decade, we’ve experienced strong markets, but in 2019 the Federal Reserve (the Fed) cut interest rates for the first time since 2008 – not one, not two, but three times. What does this mean as we look ahead to this new decade?
When interest rates are lowered, it usually means the economy is showing signs of weakness, and when interest rates are higher, the economy is typically strong. Investors should be mindful of fluctuating interest rates, which can not only be a barometer for the health of the economy, but can also affect your investments.
After a generally positive decade in the 2010s, does this mean we’re in store for a period of correction, or even a recession in the 2020s? The truth is, nobody knows. And, as always, the best thing you can do is work with your financial adviser to make sure that your portfolio’s asset allocation aligns with your long-term strategy.
Investors sometimes turn to alternative investments, which can complement traditional stocks and bonds in a well-diversified portfolio. Real estate, for instance, can be an income-producing investment that may have a different risk/return profile than bonds. And private equity, for example, can be a similar alternative to stocks.
Overall, alternative assets can be powerful diversifiers in a portfolio. These assets have also become more accessible for individual investors – and may become even easier to invest in – due to an influx of technology-enabled investment platforms.
And standards for being an “Accredited Investor” may be relaxed in 2020, based on an amendment proposed by the Securities and Exchange Commission at the end of 2019.
While the Fed lowers interest rates to help the economy grow at a healthy rate, it’s inevitable that the bull market will turn into a bear market at some point, and for some duration of time.
No one knows what will happen in the next year, let alone the next 10 years, but of course, you’ll want to be prepared and make sure your portfolio is optimized to meet your long-term goals.
To Discover, Research and Invest in alternatives, visit the Millennium Alternative Investment Network® (MAIN)®.
The material in this blog is presented for informational purposes only. Millennium Trust Company performs the duties of a directed custodian, and as such does not sell investments or provide investment, legal or tax advice. Millennium Trust does not undertake any due diligence for you, including on the Platforms listed on MAIN, their prospective investments or any other investment you may select. The inclusion of any Platform on MAIN in no way represents an endorsement or recommendation of the Platform or its investment options. The Platforms and investment options on MAIN are not a complete list of investment providers or investments that you may choose to hold in your Millennium Trust account, and are provided for informational purposes only.