Dan Suzuki, Deputy Chief Investment Officer and Chairman of the Investment Committee at Richard Bernstein Advisors LLC, looks at the best investments of the last 50 years to see what we can learn:
What Does a Once-in-a-Generation Investment Opportunity Look Like? [CAIA Association] – “At RBA, we believe that we are at a major inflection point in macro fundamentals and market leadership, offering investors a once-in-a-generation opportunity to reposition portfolios. To put the magnitude of this opportunity into perspective, we have identified what we believe are the best trades of the past 50 years — those asset class, regional and sector allocation decisions that would have netted the greatest long-term outperformance. Each of these trades would have generated excess returns averaging 7-19% per year spanning periods of 8-22 years:”
It’s an interesting analysis with some (kinda) expected conclusions – that many of the periods of growth coincided with feelings of American exceptionalism until valuations got too high. Yet today, with high valuations, many have doubled down.
If you want RBA’s conclusion, it’s in the last line of the article “With all eyes on US large cap growth stocks and disinflation beneficiaries, we see bigger opportunities in international, small caps, value stocks and inflation beneficiaries.”