Asset Allocation
Stocks and Bonds Should Come Back in 2023, Says Cambridge Associates
The consulting firm explains why, even with a recession, it will pay to overweight equities.
Still-high inflation and an expected recession call for slighting stocks and most other categories, the asset kingpin advises.
The de-risking trend has seen equities cut in half since 2008, to around 30% of assets, and Milliman thinks that’s where it will stay.
Gregory Davis predicts that a U.S. economic slump, when it occurs, will be mild.
Instead of rebalancing quarterly or monthly, do it annually, and more strategically, the firm advises.
In three decades, both asset classes went south at the same time in only nine quarters, and two of them occurred this year, says Panama’s Santiago.
After lagging during the stock bull market, the asset class now scores decent returns, says Morningstar.