ALO16: Beyond 60-40... A Bold Approach to Asset Allocation ft. Troy Gayeski
Troy Gayeski, Chief Market Strategist for FS Investments, joins us today to discuss asset allocation and investment opportunities in today’s higher yield environment. We discuss how higher interests rates are impacting the risk and reward across capital markets and why higher interest rates mean equity valuations may be stretched at the current juncture. We discuss how asset allocation has evolved from the 60-40 benchmark to a 40-30-30 allocation for many institutional investors with a 30% allocation to alternatives. We delve into where Troy sees opportunities within alternatives particularly in real estate, private equity, secondaries and liquid alternatives given his view that we are late in the economic cycle. -----50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE-----Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.Learn more about the Trend Barometer here.Send your questions to info@toptradersunplugged.comAnd please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.Follow Alan on Twitter.Follow Troy on LinkedIn.Episode TimeStamps: 02:44 - Introduction to Troy Gayeski11:36 - A top-down macro perspective19:43 - The state of the 60/40 portfolio26:37 - How do investors react to the interest rate?30:47 - Analyzing the alt space35:50 - Advice for allocating to real estate40:00 - An overweight of privates?44:02 - A mockdown in valuations - an unfolding process or mostly done?46:30 - Opportunities and positioning in the liquid space52:42 - Building a diversified liquid alts portfolio55:09 - Is old...