Asset Classes Quotes

There are two main drivers of asset class returns - inflation and growth.

Banks may be considered as the primary source of "paper speculation," and only the foster the spirit of gambling in paper, in lands, in canal schemes, town lot schemes, manufacturing schemes and whatever could hit the madness of the day.

Owning a variety of asset classes means that some part of your portfolio will be doing well when the cyclical turmoil arises. A broadly diversified portfolio includes large capitalization stocks, small cap, emerging markets, fixed income, real estate and commodities.

Never underrate the importance of asset allocation.

Commodities tend to zig when the equity markets zag.

People want to make sure there is flexibility to reallocate assets. They are trusting us to make the asset allocation decisions.

If the investor doesn't have enough time and skill to investigate individual stocks or enough money to diversify a portfolio, the right thing to do is to invest in exchange-traded funds that give you exposure to asset classes. It does make sense for the individual investor to think in terms of holding individual asset classes.

The risks facing hedge funds are non-linear and more complex than those facing traditional asset classessuch risks are currently not widely appreciated or well-understood

I think that the first thing is you should have a strategic asset allocation mix that assumes that you don't know what the future is going to hold.

No one knows what the top-performing asset class will be next year. Lacking this prescience, your next-best solution is to own all of the classes and rebalance regularly.

As in most subjects relating to money management, there's a wide diversity of opinion on portfolio concentration versus diversification.

Banks don't want certain asset classes, and that's created opportunities for private equity, hedge funds, Silicon Valley. In this case I think he was referring to some of the European banks shedding assets, and the big buyers are probably not going to be big American banks. Someone like Blackstone may have a very good chance to buy those assets, leverage them, borrow up a little bit, and do something good there.

Children should be taught in school that you should have all kinds of asset classes in your portfolio. They should be taught what those asset classes are, and their advantages and disadvantages.

Unlike cheap stocks, inexpensive asset classes have a lower chance of big drawdowns (broad asset classes don't go to zero) and a higher probability of average or better returns.