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- American author and trader Mark Spitznagel talked about what he believes is the best investment for a person who plans for the long term.
- “We can all agree that in the next 20 years, the S&P 500 is probably the best place to be. And if you could do one trade right now, it would probably be to buy the S&P,” said the writer in conversation with Yahoo Finance.
- In addition, he added that it would not be a problem to acquire the index right now even though it is quite “expensive” at the moment.
Mark Spitznagel, who is the founder of Universa Investments and author of the books “Safe Haven” and “The Dao of Capital ” spoke with Yahoo Finance about the best long-term investors.
The writer called himself a bear in the stock market but admitted that “in the next 20 years, the S&P will probably be the best place to be ” And if you could make one trade right now, it would probably be to buy the S&P despite how expensive it is today .”
The financial company that Spitznagel founded is dedicated to researching safe-haven investments with the aim of protecting capital and, at the same time, obtaining good returns.
“Mitigating risk is really not about where we think the world will be. Mitigating risk is about what that path will look like and the opportunities you have along that path,” Spitznagel said.
DataTrek’s Nick Colas revealed that in no consecutive 20-year period since World War II have stocks offered investors a negative return.
“History shows that 20 years of continuous investing is the bare minimum to ensure a positive real return for the S&P 500. Very good results can be achieved in a shorter period if all the stars are aligned, of course. But… two decades is the ‘correct’ long-term time frame to use in a mental model of how long it may take for US stocks to generate value for investors.”Nick Colas.
At this time, the S&P 500 has accumulated a gain of more than 14% so far this year, standing close to 4,400 points. This means it is just 150 points away from its yearly high.
