Many investors see changing markets as a problem, but we’ve found that changes can present important investment opportunities.
Markets don’t only alternate between bull and bear market conditions; they also cycle through multiyear trends as different regions, capitalizations, and styles come in and out of favor over time.
Major market trends feel permanent, like the market has changed for good. These trends typically last years, and there are often solid reasons why these trends should persist. But historically, even the most enduring trends eventually give way to something new.
Investment themes over the decades
Ruchir Sharma, chief global strategist at Morgan Stanley, has found that each decade going back to the 1960s had one dominant investment theme. There’s no way to predict the next market trend in advance. However, Sharma observed one clear pattern: the stocks that did best in one decade often do poorly in the following decade—which doesn’t bode well for US mega-cap stocks in the 2020 decade.
"If history is a guide, the 2020s will be anything but another American decade. Economic trends that define one decade rarely define the next."
Ruchir Sharma, New York Times
Investing for changing markets
Are your investments prepared for changing markets? The FundX Funds are designed to adapt to changing markets and capitalize on market trends, and over the last two decades, they’ve navigated changing stock and bond markets.
When you invest in the FundX Funds, you don’t have to figure out when the market’s changing or what to do when the market changes—we’ll do it for you.