I think that ASX Stock Market could be the best way to grow your wealth in 2020.
When you look at S&P/ASX 200 Index (ASX: XJO) you can see that it’s still down by around 16% from the pre-coronavirus high. So when you think about how low the interest rate now is and the long-term earnings, this valuation for the ASX share market doesn’t look bad.
I’m not as confident about the US share market considering a second wave could shut down parts of the country again.
When you look at the other investment options, I think there’s only one winner – Stock Market. Bonds and cash have very little yields. Property values and the rental income looks dicey at the moment. Who knows which way gold will go?
Businesses have the ability to keep growing profit. ASX Stock Market are investing for growth and paying good dividends. It’s this power of business that allows for great compounding of your wealth. Some businesses are able to earn more than 20% on the profit that is retained in the business.
Some ASX Stock Market like Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) have stormed to all-time highs recently. I’m not so sure about investing in the …
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Author: Tristan Harrison
