4 Funds To Buy And Hold For The Next 5 Years
Zacks Investment Research | Feb 18, 2020 11:00PM ET
Mutual fund investors seeking an entry point into the mutual funds market have an array of options to choose from, courtesy of broad-based factors that are leading the way for U.S. securities at present. After all, when one considers investing and holding onto their investments for a period of five years, one must target good gains.
Factors to Set the Pace for Next 5 Years
In order to understand what may impact the financial markets over the next five years, one must consider the trends that made presence felt recently and have the ability to make big waves in the near future.
First, a top trend that has dictated markets for a while now is the advancement in technology. Sector-specific factors, such as AI, machine learning, Big Data and cloud computing led to this rally, boosting the sector to touch record highs.
Only last year, the Technology Select Sector SPDR Fund rose (XLK) 47.9%, much of this gain is attributed to the progress in U.S.-China trade talks during the second half of the year. Nevertheless, the underlying factors in the industry are strong and are expected to drive it higher ahead.
Second, the prominent emergence of millennials and Gen Z in the U.S. homebuyer pool has been more than welcome. In 2018, millennials constituted as much as 37% of homebuyers in the country, per the National Association of Realtors.
According to Zacks Investment Research
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