The head of investment research at the world's largest hedge fund says most portfolios are too concentrated in stocks | Markets Insider

Bridgewater's Karen Karniol-Tambour told Bloomberg on Thursday that the"new era" of economic policy is the coordination of monetary and fiscal policy.

She added that this new era of policies requires a diversified portfolio in case of inflation – most portfolios are too concentrated in stocks and should add in gold or inflation-linked bonds.Karen Karniol-Tambour told Bloomberg on Thursday that"as the world changes, investing needs to change with it," and broke down a macro-economic signal that could justify why investors too concentrated in equities should diversify.

While central banks and the ECB have said for a long time that they need this fiscal coordination, the coordination hasn't happened in large part, around the world, until the pandemic, said Karniol-Tambour. The COVID-19 crisis was when"it became more clear and obvious that without fiscal stimulation we simply will not get out of the current downturn.

For example, the new levels of coordination between fiscal and monetary policy have left over a lot of money to go into the stock market, she explained. But, she said"most portfolios are already too concentrated in equities, so where a lot of our research has been is what are the most important assets to diversify equities in this environment of fiscal and monetary coordination?"

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The stock market has 'a ways to go' as increased liquidity flows into stocks, Wharton professor Jeremy Siegel says | Markets InsiderThe stock market still has 'a ways to go' even as it approaches record all-time highs, according to Wharton professor Jeremy Siegel. In an inter...
Source: BusinessInsider - 🏆 729. / 51 Read more »

The bear market and recession are over and the S&P 500 is 'fully priced' with little room to run upward, investing legend Byron Wien says | Markets InsiderByron Wien told Bloomberg that the bear market and recession are over, and while the S&P 500 may climb slightly higher, it will not be makin... Huh? More tea leaves reading from the clueless.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Stock-picking strategy from portfolio manager who's up 100%+ in 2020 - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Stocks making the biggest moves premarket: Brinker International, Tesla, Eastman KodakThese are the stocks posting the largest moves before the bell. When $TSLA splits will RobinHood's servers be able to handle the impact? It’s people eats people Tesla $TSLA is up 6.8% today. Here's why:
Source: CNBC - 🏆 12. / 72 Read more »