Just when cynics think the bull market might be over, fund guru Ron Baron said stocks are likely to double over the next decade, according to CNBC.
Baron was bullish on the economy, and said that low oil prices are likely to stimulate spending. Even if the Fed raises interest rates, they are going to be low by historical levels. He saw a budding comeback in the housing market, and thinks auto sales will continue to increase. To double over ten years, there would need to be an average 7.2% return for the market, and Baron thinks that is achievable.
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When it comes to choosing individual stocks, Baron said it is important that a company has a competitive advantage that cannot be easily imitated, something Warren Buffett calls a “moat.” Companies need to be innovative and “fast on their feet … to make their businesses pivot and do something differently, or take advantage of opportunities.”
