Forget Chasing Trends: Here's What I'd Actually Invest In Right Now
Buying a broadly diversified portfolio of stocks (including international stocks) with VTI and VXUS can offer peace of mind for long-term investors.
Overview
The stock market is doing better than usual. The S&P 500 index (SNPINDEX: ^GSPC) has gained more than 18% in the past year. That's significantly higher than its long-term average of 10% annualized returns. The artificial intelligence (AI) boom has brought hundreds of billions of dollars per year in capital expenditures that have rippled through the economy, but can the good times last? What hot sectors will outperform in 2027?
To me, as a long-term investor, those questions are irrelevant. I'm not worried about whether or not AI is a bubble. I don't care which hot trends other investors are chasing. I hold a diversified portfolio of basically "all the stocks in the world." I try not to bet too heavily on any one stock or sector. I want to own great stocks for the long run. One of the best ways to do that is to start with low-cost index funds.
Details
Let's look at two broadly diversified stock exchange-traded funds that I own in my portfolio -- and why they could be good choices for long-term investors.
Source
Originally published at www.fool.com.