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I have one question. Is the 3% number an increased or decrease for GS
portfolios? I think it actually represents a decreased allocation in
commodities and an increase in stocks.
Marlowe Cassetti wrote:
> 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
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