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Komfie Manalo, Opalesque Asia: Private debt is an area where in general the investment outcome is more consistent compared to most other asset classes. However, much depends on how much time and resources are spent making sure you invest with the right people and strategies, explained Mark Fitzpatrick co-founder of wealth management solutions provider Glide Capital. The company focuses on private credit and advises investors on how to more efficiently invest into new alternative investment strategies, particularly into private debt.
Fitzpatrick told participants of the Opalesque 2018 Miami Roundtable that if you look at the past, wealth manager used to have a 60/40 portfolio. He added that the stability was designed to come from the fixed income component and the equity gives you the "kicker".
But now, there is no return at all from the 40% fixed income as rates have been driven down to stimulate the economy and so advisors have been piling into equities to meet their targets, and that approach works until it does not. There are a lot of people overly exposed to public equities, he said.
He continued, "In my mind, the stock market is not just about fundamentals but it tends to be a barometer of people's confidence, and that overlay of human emotion and the pressure to put capital to work scares me. The majority of clients and invest...................... To view our full article Click here
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