Thus far, the 1990s have brought investors unpleasant news. However, if investors stay calm and adjust their portfolios to capitalize on coming demographic and economic changes, the 1990s may produce nice profits, despite a bad start. Stocks still promise to be the best investment, and bonds eventually should prove to be a reasonably good buy. Real estate looks unpromising, and the same may be said of gold (unless inflation soars or fears run rampant). In the 1990s, the single most important determinant of investor success will be asset allocation - how assets are distributed among the various classes of investments. While asset allocation is crucial for successful investing, investors should not underestimate the importance of stock picking. Growth companies - businesses with earnings that are steadily increasing at 15% or more a year - will lead the market in the 1990s. One example is Rockwell International. Overall, the investment outlook for the 1990s can be characterized as worse than that for the 1980s but not terrible.
Full text: Fortune, Fall 1990
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