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Good question. I had assumed it was an increase but it could be a
reduction. I do believe that managed futures are making an inroad into
institutional and high net worth portfolios.
----- Original Message -----
From: The DOCTOR <droex@xxxxxxxxxxxx>
To: Marlowe Cassetti <marlowec@xxxxxxx>
Cc: <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, January 09, 2000 10:37 AM
Subject: Re: [RT] GEN: Shift to Futures?
> 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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