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B. G., Opalesque Geneva: 2022 has been an especially challenging investing environment, especially for the typical 60:40 portfolio. With inflation at levels not seen since the 1970s, rising
rates, Europe in recession and the US likely to follow
shortly, PM Alpha believes there is more uncertainty and volatility
in the public markets to come, with the risks being very
much to the downside. That is a reason why investors should consider private markets. In fact, they - and wealth managers - should re-balance their portfolios and allocate 10 to 60% to private markets.
Private markets refer to investments in equity and debt of privately owned companies.
According to PM Alpha analysis published in their CIO Private Markets Perspectives & Allocations Series report, there has been a near halving of the number of publicly listed US companies since the late 1990s, with companies staying private for longer, coupled with greater value creation happening pre-IPO.
Alexis Weber, CIO and founder, has outlined core macro drivers, and hence private markets opportunities in 2023 as being the Great Correction, Inflation era, and Income gap:
Core macro drivers in 2023
Given that the macro environment continues to be uncertain and...................... To view our full article Click here
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