The head of investment research at the world's largest hedge fund says most portfolios are too concentrated in stocks - Creak News

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

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Screen Shot 2020 08 13 at 2.50.43 PMBloomberg TV

  •  Bridgewater's Karen Karniol-Tambour told Bloomberg on Thursday that the "new era" of economic policy is the coordination of monetary and fiscal policy. 
  • Changes in interest rates and quantitative easing are no longer the primary drivers of economic cycles, she said.
  • 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. 

 The Bridgewater Associates global head of investment research said that in most of modern history "interest rate changes were the primary driver of economic cycles." After the financial crisis, quantitative easing, or printing money, became the primary driver. But now, there's a "new era of policy." 

See the rest of the story at Business Insider

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