Best investments for 2020 and the next decade, according to a top U.S. financial adviser – MarketWatch

Posted: December 20, 2019 at 6:51 pm


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Markets enter a new week clinging to hopes that a Phase 1 trade deal between the U.S. and China will hold together.

Analysts note that some sticking points and questions surround the tentative trade agreement, and cautious optimism seems the byword for Monday as stock futures creep higher.

Its been a pretty rewarding year for many investors, and no one wants that derailed at the last minute by trade hiccups. Double-digit percentage gains for stock markets arent just limited to the U.S., with Europe and parts of emerging and Asian markets also having enjoyed a solid year.

Think international going forward, says our call of the day from Raj Sharma, a private wealth adviser at Merrill Private Wealth Management. Hes been on Barrons list of Americas Top Financial Advisors for 16 straight years through to 2019, and can also be found on Forbess 2019 Top 100 U.S. Wealth Advisors.

The emerging consumer is a very durable investment theme, says Sharma, who notes that the developed worlds population is shrinking and getting older, but emerging markets hold huge opportunity given the vast numbers of younger people.

He points out that India has over 1.2 billion people and 65% of the nation is under 35 years old. Investors can do well in these markets by figuring out what those consumers need to improve their lifestyles, and the items they will buy, such as billions of cars, he says.

To do well consistently over time you have to be a bit contrarian in the way you look at things. If you always follow the hard dot, youre likely to be disappointed, Sharma says, noting that international stocks and emerging markets are selling at over a 30% discount to the U.S.

The Dow DJIA, +0.28% , S&P SPX, +0.49% and Nasdaq Composite COMP, +0.42%, while European stocks SXXP, +0.80% have surged and Asian markets ADOW, -0.26% had a mixed day. The dollar DXY, +0.31% is weak and the British pound GBPUSD, -0.0692% is up after last weeks victory for the Conservative Party.

Our chart from Jeff Desjardins, editor of the Visual Capitalist blog, shows the S&P 500 SPX, +0.49% over the past 30 years, using data from Macrotrends. If you invested $100 in the U.S. market on November 26, 1990, you would have over $1,000 today, he notes.

Shares of PG&E PCG, +0.64% are down over 20% as Gov. Gavin Newsom of California demands changes to the utilitys plan to pay wildfire victims and exit bankruptcy.

Food flavoring group International Flavors & Fragrances IFF, -0.44% is merging with conglomerate DuPonts DD, -0.63% nutrition unit in a $26.2 billion deal.

Boeing shares BA, -1.65% are down after the Wall Street Journal reported that the aircraft maker may stop or further cut production of the 737 Max, involved in two fatal crashes. A Boeing spokesman told the Journal that the company is working with regulators on the planes safe return to service.

Im absolutely confident that for two years if every nation on earth was run by women, you would see a significant improvement across the board on just about everything ... living standards and outcomes. Barack Obama, the former U.S. president, speaking in Singapore.

A busy data week kicks off with the Empire State Manufacturing index in the New York region, which came in below expectations. The Markit manufacturing and services purchasing managers indexes and a home builders index are still to come. (Data preview.)

Hallmark Channel to reinstate same-sex-wedding commercials after boycott threats

Disgraced Hollywood producer Harvey Weinstein says women should be thanking him

Another big winter storm is sweeping across the U.S.

This photo of two mice fighting on the London Underground is everything

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Best investments for 2020 and the next decade, according to a top U.S. financial adviser - MarketWatch

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December 20th, 2019 at 6:51 pm

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