Liquid Alternatives: Advisors Need Creative (Liquid) Alternatives – Aspiriant
The traditional [60:40] portfolio may no longer work over the long term.
Sandi Bragar, managing director at Aspiriant, a wealth management firm based in Los Angeles with $14 billion in assets under management recommends advisors look for alternatives to the [60:40] portfolio. Reason: Expensive stocks and low returns on bonds. (Financial Advisor)
The [60:40] is somewhere in between a rock and a hard place
“Equities were expensive going into the pandemic and are even higher now,” said Bragar in an interview. “Investors should be very careful right now” about where they put their money. “The boost that the market should get with the recovery from the virus and the predicted increase in future profits are already built into the market.”
She warned that stocks had become so expensive that it was difficult to find value stocks. However, there is also the chance that stocks could head higher once the federal infrastructure bill gets passed.
Bragar’s strategy for the ’60s portfolio: Invest in value stocks, and keep a position in cash or liquid assets to scoop up stocks on the cheap in the event of a market meltdown.
Aspiriant’s Bragar: Practical portfolio
Sandi Bragar works with a variety of clients ranging from entrepreneurs and corporate executives to family business owners. She revealed that she recently rejigged their portfolios and included:
- Fixed income
- Liquid alternatives
- High-quality, more defensive global stocks such as Apple (NASDAQ: AAPL), US Bancorp (NYSE: USB) and Accenture (NYSE: CAN), and globally diversified stocks, with an emphasis on cheaper ones, such as Johnson & Johnson (NYSE: JNJ), Booz Allen Hamilton (NYSE: BAH) and Molina Healthcare (NYSE: MOH)
- Value stocks in emerging markets
DailyAlts recently reported on new liquid alternative funds
Canadian alternative asset manager Ninepoint Partners LP announced last Thursday the launch of the Ninepoint Alternative Credit Opportunities Fund, a new liquid alternative mutual fund that will invest in Canadian, U.S., and international fixed income securities for short-term and long-term gains.
Asset manager WisdomTree Investments, Inc. (NASDAQ: WETF) launched a new ETF designed to navigate the current yield-challenged environment. The WisdomTree Alternative Income Fund (HYIN) will invest in alternate credit sectors and trade on the CBOE.
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