Stock Investing For The Long Term
Hi,
What a roller coaster ride it’s been in the global markets this year!
Picking the right penny stocks is always tricky but profits are there to be made. You need to keep a close watch on your portfolios, utilize stop loss triggers and watch for danger signs.
But we hope you are also in the market for the longer term. Shares have generally done badly over the last decade but that’s actually pretty unusual.
I spotted a recent survey done by Barclays Capital on the probability of shares outperforming both deposits and bonds over the long term.
Here are the highlights:-
Years Of Investment > Shares Outperforming Deposits > Shares Outperforming Bonds
- 2 > 67% > 69%
- 3 > 70% > 76%
- 4 > 74% > 77%
- 5 > 74% > 75%
- 10 > 92% > 81%
- 18 > 99% > 90%
So, you can see that probability of shares outperforming both bonds and deposits was 67% and 69% respectively, after only two years, climbing to 99% and 90% after being held for 18 years
Note: This does NOT mean that shares outperformed deposits by 67% after two years but that there was a 67% probability that shares would outperform by some degree.
Well worth thinking about for your long term stock investment strategies.
Todd B
