facebookDo you think the growth of the S&P 500 index will taper off in the next decade or continue to grow further? - Seedly

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Anonymous

07 Dec 2020

General Investing

Do you think the growth of the S&P 500 index will taper off in the next decade or continue to grow further?

S&P 500 index is now 62% above its March low and up 16% from 1 year ago.

Discussion (13)

What are your thoughts?

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Erm, but why the need to compare with the March Low? the march covid situation is too-drastic for us to even look at it again!

& when S&P is up 16% from 1 year ago, is that something really alarming?

It is alarming for STI instead as i think STI is a far-worse performer if to compare it with S&P...
But why the question in the first place? Preparing it to drop soon???????​​​

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Hi there,

The key driver of the S&P500 massive boom has always been tech companies Since they are typically growth related stocks. The same is seen with the other indices eg. Hang Seng Index. The growth in tech is especially prominent during the pandemic. So I think the question then will be, will tech continue to be the main driving force. It really depends because different industries experience growth differently as its often cyclical. At some point in time, consumer goods experienced a boom and at other points in time, it was the small cap companies experiencing a surge.

History is a good teacher but it may not provide a crystal ball answer to what's happening. A lot of it has to do with adaptation to world wide events but we can be relatively certain tech will be here to stay for quite awhile.

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Aidan Neo

03 Dec 2020

Financial Services Consultant at Manulife Financial Advisers

Unless you can predict the future accurately, there's absolutely no reason of investing in growth ET...

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