In this video from CNBC, Colbert Narcisse explains the importance of recalibrating asset allocations and why he’s watching for opportunities in private markets. Mr. Narcisse is Global Head of Alternative Investments for Morgan Stanley Wealth Management.
“I’d hate to be a trader in this environment,” Mr. Narcisse says. That’s why he’s looking at private, non-traded investments with a 2-4 year time horizon. Volatility will be high, interest rates will be low, and the S&P 500 will gain between 6-12%, in Mr. Narcisse’s view, which makes private-market investments look better than exchange-traded ones.
Nevertheless, Narcisse recommends owning a diversified portfolio of complementary assets. He also stresses the importance of frequent recalibration of one’s holdings, to avoid becoming overweight in sectors that are growing and underweight in sectors that are declining. His strategic asset allocations are as follows:
- 56% equities
- 22% alternatives
- 19% bonds
- 3% cash