Masters in Business At the Money: This Is Why Stocks Perform Best
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Sep 25, 2024 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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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.
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.
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.
