We have a fascinating discussion with Sebastien Page, Head of T Rowe Price’s global multi-asset division, about the new regime we find ourselves in. But what exactly does this regime change mean? Well, for the first time in 40 years, we have seen a higher high in fed funds, marking the end of the era of near-zero interest rates.
This shift has significant implications for portfolio construction and diversification strategies. In this interview, Sebastien Page shares his insights on how this new regime differs from previous periods and how it requires us to rethink traditional approaches to asset allocation. Join us as we explore the strategies and considerations for building and protecting your wealth in this changing financial landscape.WEALTHTRACK Episode #2026 broadcast on January 12, 2024
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- Head of Global Multi-Asset & Chief Investment Officer
- T. Rowe Price
Sébastien Page, Chief Investment Officer and Head of Global Multi-Asset at T. Rowe Price, shared his and his team’s analysis of what they are calling the “new market regime” and its investment implications.
DON’T GIVE UP ON PORTFOLIO DIVERSIFICATION
- The future is always unknowable.
- The majority of economists have been wrong during the great financial crisis, COVID-19 and its aftermath, and the recent tightening cycle.
- Being broadly diversified enables you to take advantage of market performance wherever it excels.
- Usually, it protects you from random declines in specific assets or markets.
PAGE: OWN BONDS
- 2022 was the worst bond performance in history
- Long-term US Treasury bonds -40% peak to trough
- US Treasury securities are supposed to be safe
- Yields much higher now
- Bond income attractive
FROM THE ARCHIVE
Andrew Foster from the WEALTHTRACK Archives:
FINANCIAL LITERACY SIMPLIFIED
Talk about putting the Covid lockdown to good use! T. Rowe Price’s Sébastien Page wrote his book, Beyond Diversification: What Every Investor Needs to Know About Asset Allocation for financial professionals, but it took sitting down with his ten-year-old daughter during Covid to make financial education accessible. Find out more.