It’s a good time for investors to be light on their feet.
As the new year unfolds, the question of whether to stay aggressive or temper expectations is on the minds of many with money in the financial markets. That includes investment experts sharing ideas with Bloomberg News about where to find a profitable home for $10,000.
The S&P 500 has notched total returns of 25% or more two years in a row, stoking fears that the tech stocks propelling the index will sputter.
“The reward you’re getting for taking on risk has shrunk quite a bit over the past 12 months” in some areas, said Philip Straehl, Morningstar Wealth’s chief investment officer for the Americas.
Straehl isn’t counseling a retreat from stocks, however. He and other advisers surveyed by Bloomberg News are exploring investments with what they say are more appealing risk-reward profiles than the most popular stocks, including pockets of international equities and less glamorous sectors of the US stock market like healthcare.
When the experts were asked how they’d spend a $10,000 windfall outside of the investment world, the focus was on experiences, ranging from a trip to the charming town of Vitznau on the shores of Switzerland’s Lake Lucerne to funding ski adventures in Japan. Staying put and devoting money to personal and professional growth with a management coach was another choice.
For investors who want to invest in the experts’ themes using exchange-traded funds, Bloomberg Intelligence ETF research associate Andre Yapp points to funds that can serve as rough proxies.
