Insider Today: Invest for the next decade

In today’s big story, we’re looking at where experts advise people to park their cash over the next decade.

• Markets: Economist Neil Dutta makes the case for a soft landing for the US economy, and what that means for 2024.
• Tech: The “power outfits” of up-and-coming investors.
• Business: Some people are “doom spending,” while others are “doom saving” amid economic uncertainty.

The market volatility in the wake of the pandemic gave people visions of getting rich overnight, but true investing is a long-term play.

With that in mind, Business Insider’s James Faris and Will Edwards spoke to nine professional investors, strategists, and financial planners about the best way to invest and manage personal finances for the next decade.

Their piece has plenty of tips for anyone wondering where to put their money, from the actual investments to the vehicles to use.

Let’s get the bad news out of the way first: A near-zero interest rate environment won’t be returning.

Yes, rates will eventually come down. But it won’t happen overnight, and they won’t drop to pre-pandemic levels. (It’s worth remembering a rate cut doesn’t guarantee a market boon, as we’ve previously covered.)

As a result, a new market regime means new investing strategies will be necessary, James and Will write.

Setting aside recency bias, it’s been relatively easy to generate good returns in the market over the past 10 years. Sure, there have been bumps in the road. But if you bet on most of the big-name tech stocks — or took a chance on some innovative newcomers — you’re probably sitting pretty.

But elevated rates mean cash won’t come cheap for those innovative companies looking to take chances. It also means the bar for returns is that much higher. (More on that here.)

As James and Will outline, that could mean looking to mid-cap stocks with room to grow. Or even going abroad, where stocks aren’t as pricey.

Whatever you decide, patience will be the name of the game for investors going forward. And to be fair, that’s not much different than how things have always been.

• Elon Musk says his kids’ safety is at risk unless a Texas judge restricts access to his custody battle with Grimes
• Meet Allison Greenfield, the law clerk driving Trump bonkers at his fraud trial
• We now have more details on what the heck happened at OpenAI
• Millennials have become their own worst enemy in the housing market

🔔 Before the opening bell: US stock futures fall early Monday after the S&P 500 notched a new yearly high. 

2. Speaking of 2024… JPMorgan’s top market strategist issued his 2024 stock forecast. It’s the most bearish projection on Wall Street so far, seeing the S&P 500 ending next year at 4,200 — representing a potential downside of 8% from current levels.

3. Crypto stocks have notched triple-digit rallies this year. AI names may have commanded the market’s attention lately, but another corner of the market is seeing impressive gains: stocks tied to digital assets. Coinbase, MicroStrategy, Riot Platforms, and Marathon Digital shares are up more than 250% in 2023. Meanwhile, bitcoin has climbed about 130% year-to-date.

2. VC “power outfits.” Business Insider’s 2023 rising stars of VC shared the clothing items that help them look and feel the best at work. Their style is a bit less traditional and includes pieces like Chelsea boots, jeans, and high-top sneakers.

3. Leaked meeting transcript: AWS VP says senior engineer departures are “making us better.” Some employees were concerned about the exodus. But Prasad Kalyanaraman told employees last month that attrition helps the company be more focused.

2. A Gen Xer making $344,000 secretly worked three jobs. Then two of them laid him off. The 48-year-old said this scenario is exactly why he was overemployed. He said balancing three jobs was transformational for his finances (but also led to burnout).

3. Doom saving vs. doom spending. In the face of economic uncertainty, some Americans are “doom spending” to help cope with the stress. Meanwhile, others are “doom saving,” which could ultimately cause headaches for some businesses.

• We got a look at the menu for CosMc’s, McDonald’s new spinoff.
• At VMware, “change” and “uncertainty” loom after its $69 billion acquisition by Broadcom, which left customers on edge.
• I made a GPT, a custom version of OpenAI’s ChatGPT, and it only took me 15 minutes. Here’s how.
• Three questions to ask yourself if your partner’s career success is making you jealous.
• I shopped at Banana Republic and J. Crew to see how their transformation is going. One was much more fun to shop.
• How to get back into an exercise routine: six tricks from a former fitness coach.

• The Oxford Dictionary announced its Word of the Year. The contenders included beige flag, de-influencing, heat dome, parasocial, prompt, rizz, situationship, and Swiftie. Check out the winner.
• Happy birthday, Jay-Z! Tyra Banks, Blake Snell, and Thomas Carlyle were also born on this day.
• Earnings today: Gitlab and other companies.

Dan DeFrancesco, senior editor and anchor, in New York City. Diamond Naga Siu, senior reporter, in San Diego. Hallam Bullock, editor, in London. Lisa Ryan, executive editor, in New York.

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