After an 8 year long rebound where it’s been easy to make a substantial total return by just buying the SP 500 Etf, I believe you must be looking into a stock picking strategy that involves filtering financial statements of quality companies. The main reason being that valuations across all asset classes are stretched and it’s becoming harder to find decent total return stories. If you are willing to put the effort your performance will easily beat the most known benchmark. I am presenting 2 graph that explains what I mean:
you can see the very decent perfomance of the Index below….
Now if you would have done your homework on checking the potential of companies like MMM & Macdonalds & Microsoft and correctly purchased those names instead of the etf look at the difference….
The index is up 57%, while microsoft is up 128%, Macdonalds 197%, MMM 137%
Of course the goal is now to predict what will beat the index by a wide margin. That’s where you have to put the effort and the discipline to go through those financial statements. You can’t be lazy and expect the same returns you had since the 2009 rebound. It’s also not a bad Idea to think about splitting between paying back your mortgage faster and investing in fat yielding utilities like Dominion ressources, Duke Energy, Realty income, and safe utilities and Reits. I believe favoring high yielding stocks is a good strategy right now.
Be well and get wealthy