Investment returns getting lower. How to profit?
With investment returns getting lower and lower, professional help in managing portfolios is more important than ever.
With investment returns getting lower and lower, professional help in managing portfolios is more important than ever.
An interesting take on what the investor class needs to wrap its collective head around given the some new realities from Jean L. P. Brunel, chief investment officer at GenSpring Family Office:
The above comes from a New York Times story.聽 Brunel is from the family office world so you can bet the portfolios he allocates (or oversees) are as plain vanilla and buy-and-hold oriented as possible.
In my view, there are two ways for affluent investors to get around these new low return expectations, each comes with its own set of risks:
1.听 Tactical Asset Management (Maximizing the market's upside potential at the right time and missing as much of its downside as possible when the trend changes - this can be done but most do not have the tools)
2.听 Alternative Strategies and Asset Classes (This could encompass hedge funds or hedge fund-like vehicles that are truly non-correlated, master limited partnerships, futures, real estate, fine art, gemstones)
But again, these are not necessarily easy for the average investor to research, choose between and then deploy.聽 Which is where professional help comes in.聽 If 5% returns are to be the new norm for stocks, this kind of help will be more important than ever.