Chart of the month
S&P500 in 50.000.....by 2071
3 July 2021
The Roadmap for 2021 update shows earnings growth in 2021 has increased from 22% to 38% for Europe and USA on average. In the first 6 months of 2021 valuation increased by 3-4%, so if stocks follow earnings growth, then 2021 could be an outstanding year.
Valuation do however tend to be an anchor despite it works slowly. So the run in stocks in 2021 could be in for a pause, before we get into the final yearend run from October 2021.
There might well be more volatility in the coming months. Who knows? But for the long term things look fine;
The roadmap update also share some views on compouding and inspired by a 'house for sale' advertisment from 1941.
With 5% annual compounding the world drumbeat stock index, S&P500, will reach 10.000 in 2036 and 50.000 in 2071
Go for stocks with higher return rather than bonds and cash deposits, but obviously only if you can live with the occasional volatility
The green line is MSCI World performance in 2021. Dotted line is roadmap 2021
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Roadmap 2021 update after 2Q 2021
Roadmap 2021 and deep digitalization for 2020s