Jeremy Schwartz, Global Chief Investment Officer of WisdomTree, shares insights on stock investments, emphasizing their long-term benefits. He discusses stocks as a hedge against inflation and the importance of a 7 to 10-year horizon. Schwartz offers strategies like diversification and dollar-cost averaging to navigate market volatility. He also delves into the risks versus safer investments such as T-bills and highlights the need for patience and a diversified approach to achieve meaningful returns over time.
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insights INSIGHT
Stocks vs. Other Assets
Stocks have outperformed other assets long-term, like real estate, gold, and bonds.
However, they can be risky and volatile, so consider different investing approaches.
insights INSIGHT
Stocks as an Inflation Hedge
Stocks are the best hedge for inflation, outperforming other assets.
Historically, stocks have returned 6.5% to 7% above inflation over the long term.
volunteer_activism ADVICE
Long-Term Investing
Consider a long-term holding period of 7-10 years for stocks.
Be aware that stocks can experience losses, with the longest period being 17 years.
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In this book, Robert J. Shiller examines the forces that drive market volatility, including cultural, psychological, and structural factors. He discusses how events such as technological advancements and demographic changes can precipitate market bubbles, and how these bubbles are reinforced by media coverage and 'new era' economic thinking. The book also explores psychological anchors and herd behavior, as well as attempts to rationalize market exuberance through theories like efficient markets and random walks. Shiller provides prescriptions for policy changes and investor strategies to mitigate the effects of speculative volatility.
Stocks for the Long Run
The Definitive Guide to Financial Market Returns and Long-Term Investment Strategies
Jeremy Siegel
Stocks for the Long Run provides a detailed analysis of the stock market's historical trends and long-term investment strategies. The book, updated to reflect current market conditions, includes discussions on value investing, ESG issues, the impact of the financial crisis, and the role of international investing. Siegel argues that stocks have consistently outperformed other asset classes over the long term, averaging returns of 6.5 to 7 percent per year after inflation. The book also addresses market valuation, the effects of inflation and interest rates, and the importance of diversification in a global economy.
Are equities the best long-term investment? If so, is that always true? In this episode of At the Money, Barry Ritholtz speaks with Jeremy Schwartz about why you should, or should not, go heavy on stocks. Schwartz is Global Chief Investment Officer of WisdomTree, leading the firm's investment strategy team in the construction of equity Indexes, quantitative active strategies and multi-asset Model Portfolios.
Each week, “At the Money” discusses an important topic in money management. From portfolio construction to taxes and cutting down on fees, join Barry Ritholtz to learn the best ways to put your money to work.
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