A Tale of Two Decades: Lessons for Long Term Investors

Jan 9, 2020

With our last two blog posts, we have spent some time taking a closer look at the investment asset classes as well as how they are utilized to build a well-diversified portfolio.  Even after reading our posts, given the run the S&P 500 (US Large Company Stocks) has had over the last ten years, you may still be questioning your allocation to the other asset classes. The following article encourages us to both rewind to the previous 10 years (2000 – 2009) and take a longer-term view by looking at the returns various markets have provided since 2000.  This view of the market returns emphasizes the principle of taking a long-term approach (when possible) to your investment portfolio, as the early 2000’s and the last 20 years paint a very different picture than the most recent years. While no one knows what the markets have in store for investors over the next 10 years, having a well-diversified portfolio and maintaining discipline will put you in a good position to capture opportunities and return regardless of where they will be present.

Peninsula Wealth is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Peninsula Wealth and its representatives are properly licensed or exempt from licensure. This material is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Peninsula Wealth unless a client service agreement is in place. It is expressly understood that our firm will not provide accounting or legal advice nor prepare any accounting or legal documents for the implementation of your financial planning objectives.