As the new year begins, many investors may be wondering how best to invest their money in 2024, given the uncertainty markets face as interest rates remain at multiyear highs. Thomas Heller, the chief investment officer of Switzerland-based Belvédère Asset Management , says his first piece of advice to clients with a long-term view is to stay invested regardless of the current macroeconomic conditions. “Be invested. Not being invested, in my view, is the biggest investment mistake one can make,” Heller told CNBC Pro from Zürich. “My experience is more that [investors] have [cash] on the cash account because they just simply don’t know what to do or ignore it. It’s not an active position,” he explained. Heller, whose firm typically serves clients with about $1 million in investible assets, added that earning a higher interest rate on cash balance shouldn’t be an excuse to delay investment decisions. Hani Redha, the head of multi-asset solutions at PineBridge Investments , believes investors should make decisions on portfolio allocations in line with the state of the economy. Redha, who has previously managed sovereign wealth funds and hedge fund portfolios, laid out an “intermediate-term approach” focused on the next five years. He believes this time frame roughly aligns with one business cycle and allows investors to be more adaptable to changes than holding an investment statically for 10 whole years. The chart below shows PineBridge Investments’ five-year forecasts across multiple asset classes. Where to allocate? For a 10-year investment horizon, assuming limited need for the invested money during that time frame, Heller would allocate 90-95% to equities for a “medium risk” portfolio, or 70% to equities and 20% to bonds for a “more cautious investor.” Investors comfortable with locking up a small portion of their money could also invest in higher-yielding assets such as private equity and private credit, according to Heller, who was previously the chief…
2023-12-31 20:28:00
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