As 2020 has demonstrated, the stock market can move in any direction in the short term. But as historical stock market data suggest, the stock market wields rock-solid wealth-building potential in the long run. That's why individual investors are best served by adopting a long-term mindset with a buy-and-hold strategy.
There are a number of ways to go about it. Most portfolios should own a collection of blue chip stocks, even if that simply relies on indexing, although buy-and-hold investing doesn't have to be boring. After all, investors that held onto today's blue-chip businesses before they were trendy have enjoyed awesome returns thanks to the power of compound interest.
With that in mind, investors might want to take a closer look at Dicerna Pharmaceuticals (NASDAQ: DRNA) and Fate Therapeutics (NASDAQ: FATE). The two development-stage biopharmas have much to prove, but these pharma stocks could appreciate considerably in the coming decades.