Investors should stick with stocks — despite warnings of a ‘lost decade’ ahead
As Deutsche Bank points out, stock-market returns over the past 25 years actually haven’t been all that great
Investors would have actually been better off putting all of their money in gold in December 1999 and keeping it there.
Not only have stocks reliably outperformed alternatives like bonds over the long term, but the unsustainable trajectory of global debt accumulation increases the likelihood of another inflationary spike as governments around the world attempt to inflate away the debt.
Periods of persistent inflation have in the past proven much kinder to stocks than bonds, although both asset classes took a beating in 2022.
Setting all of this aside, the Deutsche Bank team remains convinced that stocks are the best choice for investors with a long-term time horizon.
“It is true that some periods do see equity underperformance, but these don’t tend to persist much beyond a decade,” the Deutsche Bank team said.
Joseph Adinolfi MarketWatch 12 November 2024
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