To mark the beginning of the new decade, we present something different in this quarter’s report. We write from the hypothetical perspective of an investor in the year 2030, looking back on the market developments of the 2020’s. The aim is to communicate our long-term expectations for investment markets in a thought-provoking way. On the final page is our strategy summary for 2020.   

It wasn’t the “Roaring 20’s” all over again, but financial markets delivered solid returns for the decade ending in 2030.  U.S. stocksperformed well. Some foreign markets performed even better. Bonds delivered only modest returns, but offered investors pockets of opportunity along the way.

A decade ago, in 2020, some investors worried that stocks would disappoint in the 2020’s following strong returns in the 2010’s. However, they underestimated the strength and resilience of the U.S. economy, and especially American companies. The basic ingredients that have contributed to America’s prosperity over the past 250 years remain in full effect: a culture of entrepreneurship and innovation, robustcapital markets, the world’s best research universities, extraordinarily well-run and adaptive companies, and a reputation as the Land of Opportunity that attracts the top business and scientific talent from around the world.

This report reviews the major investment themes of the 2020’s. As in previous decades, certain mega-trends developed that dominated the investment landscape. Among them was the rise of China to rival the U.S. as the world’s largest economy. Meanwhile, investors who anchored to the previous decade’s winners were disappointed as market leadership rotated in a new direction.

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