BlackRock's Larry Fink: Timing Is Key in the World of Alternative Assets
Larry Fink, who serves as both the chairman and CEO of the large asset management firm BlackRock, recently provided some relevant investment portfolio guidance. annual letter To investors, in that correspondence, Fink suggested an alternative approach to the conventional 60/40 equity-debt portfolio, particularly 50% equities, 30% fixed income securities, and 20% alternative investments . Private assets? These are sometimes called alternative assets too. They differ from publicly traded ones like stocks and bonds. This group encompasses private equity, hedge funds, private credit, and real estate—essentially anything not listed on a public exchange. Historically, these types of investments were accessible exclusively to institutional and wealthy individual investors. Fink’s recommendations aligned with a recent study published by the National Bureau of Economic Research (NBER) about the returns from private equity investments. The NBER research revealed an opposite...