The bear market is roaring, investors are running for cover and the economic fallout is everywhere. Casual observation suggests that asset allocation is among the victims, or so it appears.
Dismissing the concept of multi-asset class investing is easy these days, not to mention tempting. Many corners of the capital and commodity markets are licking wounds, leaving virtually no place to hide. But this is no time to abandon asset allocation, as our two guests on today’s edition of The Inside View explain.
Strategic perspective, in short, is essential for recognizing the power of asset allocation through time, including tough times. But perspective tends to take a holiday in bear markets, which compels most investors to consider only the recent past. That risks ignoring the opportunities that arise in periods of high stress and lofty price volatility. So says our first guest, Gary Brinson, a veteran money manager and strategist whose name is most familiar as a co-author of a famous 1986 research study that helped put the concept of asset allocation on the investment map, so to speak. These days, Brinson is president of GP Brinson, a Chicago investment firm in Chicago. He’s also a board member at The Brinson Foundation.
Our other guest is Adrian Cronje, director of asset allocation at Wilmington Trust. Cronje is an expert in asset allocation and he shares his thoughts, as does Brinson, on how to think about strategic portfolio design in the current environment.
As a preview, this is no time to abandon asset allocation. To understand why, tune in…
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