WHICH INVESTMENTS ARE POISED TO DO WELL IN 2021? STRATEGY ADVICE FROM AN ASSET ALLOCATION PRO

February 19, 2021

Part 2 of 2
Old fashioned asset allocation used to be a fairly simple exercise: 60% individual stocks, usually U.S. large-caps and 40% bonds, mostly investment-grade corporates, some Treasury securities for liquidity, and a smattering of municipal bonds for higher tax bracket individuals.

Today it’s a whole different ball game, juggling multiple global asset classes, using complex computer modeling, algorithms, pricing formulas, and intensive analysis.

This is the realm of Sébastien Page, head of T. Rowe Price’s Global Multi-Asset division where he oversees $350 billion in assets. Last week on WEALTHTRACK we discussed the concepts in his new book, Beyond Diversification: What Every Investor Needs to Know About Asset Allocation.

This week we will address the current investment environment and how he and his team are positioning clients’ portfolios. What does Page think of these alternative asset classes? We’ll find out.

WEALTHTRACK Episode #1734; Originally Broadcast on February 19, 2021

Listen to the audio only version here:

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SÉBASTIEN PAGE


READ AGAINST THE GODS: THE REMARKABLE STORY OF RISK


Against the Gods: The Remarkable Story of Risk



Beyond Diversification: What Every Investor Needs to Know About Asset Allocation

INTERESTING ASSET CLASS

OWN SOME BANK LOANS

  • High yielding
  • Behave differently than other bonds
  • Less sensitive to rising interest rates
  • Reasonable credit risk

No stock mentions in this episode.

Peter Berstein from the WEALTHTRACK Archives:





DEMYSTIFYING ASSET ALLOCATION

Sébastien Page is a thought leader in the key strategy of asset allocation at T. Rowe Price. But why did he feel compelled to write an entire book about it?


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