Beyond 60/40: Private assets in an era of high public valuations
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A combination of elevated public stock and bond valuations, recalcitrant inflation, and higher-for-longer interest rates could be creating new challenges for 60/40 portfolios and an attractive entry point to private markets.
Key Takeaways
- Valuations in public markets remain at lofty levels. Persistent inflation could keep interest rates higher for longer.
- High valuations and an elevated rate environment, combined with other factors like strong correlations between stocks and bonds, could create challenges for investors with 60/40 portfolio allocations.
- Periods of high public equity valuations have historically represented attractive entry points to private markets. A balanced portfolio of alternatives has meaningfully outperformed following past periods of elevated public equity valuations and interest rates.
- Adding private markets to a 60/40 portfolio has historically enhanced returns while minimizing volatility, boosting returns per unit of risk across market cycle.
In light of public valuations, Apollo have put together three pieces to help investors understand the compelling opportunities that are arising in private markets. Across podcast, whitepaper and masterclass, the team dives into the current investment landscape across public and private markets, the areas that they are finding opportunities and risks, and the outlook for the years ahead.
Want to learn more?
Please contact Fidante if you would like more information on Apollo Global Management here.
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Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes.
Apollo Global Management
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three...
Expertise
Apollo Global Management
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three...
Expertise
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