|
PureBytes Links
Trading Reference Links
|
With stocks at historical high valuations, many commodities at major
multi-year cyclical lows, and bonds having just turned in a historically
abysmal year, it is obvious that AJC has her allocation reversed from
what it should be! Only momentum players believe that the bean stalk
grows to the sky but any farmer can tell you that the price of the beans
can't go much lower.
Earl
----- Original Message -----
From: "Marlowe Cassetti" <marlowec@xxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Saturday, January 08, 2000 12:15 AM
Subject: [RT] GEN: Shift to Futures?
> Just got through watching Abbey Joseph Cohen from Goldman Sachs on the
PBS
> Wall Street Week. When Louis R. asked her about asset allocation for
year
> 2000, she stated that for their institutional investors they (Goldman
Sachs)
> are recommending 70% equities, 27% bonds and 3% COMMODITIES!!! She
> justified the 3% by stating that they expect commodities to show good
growth
> along with the economy and the stock markets. She also commented that
bonds
> should pick up and the foreign markets should pick up too.
>
> My point is really the slow shift to the realization by portfolio
managers
> that commodities should be represented (albeit small) in their
holdings. As
> a Financial Advisor, who speculates in the futures markets on the
side, I
> noted this was reflected in the recent issue of "Financial Planning
> Magazine." The article "Toes in the Water" stated that few financial
> advisors are willing to plunge into managed futures, but more and more
are
> willing to test the waters. In the body of the article it appears
that
> institutional investors and high net worth investors are comfortable
to take
> a small position in managed futures. This may very be the new
portfolio
> paradigm; equities, bonds, money market, real estate and futures for a
> balanced asset allocation. Remember when the advice was to have a
small
> position in gold or other "hard" assets?
>
> If the technology and Internet sectors cool sometime in the future,
new era
> investors hooked on double and triple gains may push into futures and
> managed futures for satisfaction. It will be interesting to see if
this
> plays out.
>
> Marlowe Cassetti
> Colorado Springs, CO
>
>
>
>
>
>
>
|