Secular

AAA

DEFINITION of 'Secular'

An adjective used to describe a long-term time frame, usually at least 10 years. It is important for investors to identify secular trends in markets, not just short-term trends, if they want to succeed. Examples of secular trends include an aging population (which will tend to have different spending and savings habits than a younger population), the expansion of a particular technology (such as the Internet) and heavy reliance on certain commodities (like oil).

INVESTOPEDIA EXPLAINS 'Secular'

In his book "Stocks for the Long Run," Jeremy Siegel (economics Ph.D. and finance professor at the Wharton School, University of Pennsylvania) argues that equity securities (particular U.S. equities) will likely outperform the other major asset classes on a secular basis, or over the long term. He backs his argument up with the fact that between 1871 and 2001, during any rolling 30-year period (a period long enough to be considered secular), stocks outperformed all other asset classes, in particular bonds and T-bills.

RELATED TERMS
  1. Long-Term Assets

    1. The value of a company's property, equipment and other capital ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Medium Term

    An asset holding period or investment horizon that is intermediate ...
  4. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with ...
  5. Short Term

    1. In general, holding an asset for short period of time. 2. ...
  6. Asset Class

    A group of securities that exhibit similar characteristics, behave ...
Related Articles
  1. Investing

    The Ups And Downs Of Investing In Cyclical Stocks

    This strategy can be profitable but only if you know when to dump these stocks.
  2. Fundamental Analysis

    Where's The Market Headed Now?

    Whether up, down or sideways, learn about some of the factors that drive stock market moves.
  3. Investing Basics

    Overcoming Compounding's Dark Side

    Understanding how money is made and lost over time can help you improve your returns.
  4. Forex Education

    Introducing The Bearish Diamond Formation

    Profit-taking opportunities abound using this lesser-known pattern. Find out how.
  5. Active Trading

    4 Ways To Predict Market Performance

    There is academic evidence supporting different market views. Learn how and why the market can be predicted.
  6. Options & Futures

    Market Speculators: More Help Than Harm

    Speculators often get a bad rap, but it's important to remember that they only observe trends, not manipulate them.
  7. Investing

    Profit From Market Misunderstandings

    By learning to identify these key trends, investors can make exceptional risk-adjusted returns.
  8. Fundamental Analysis

    Is Your Investment Strategy Going Extinct?

    Investors need to be aware that time moves on and often leaves trendy investing techniques in the dustbin.
  9. Options & Futures

    Cyclical Versus Non-Cyclical Stocks

    Investing during an economic downturn simply means changing your focus. Discover the benefits of defensive stocks.
  10. Economics

    The ABCs Of Stock Indexes

    Indexes can track market trends, but they're not always reliable. Can you trust them?

You May Also Like

Hot Definitions
  1. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  3. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  4. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  5. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  6. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
Trading Center