- Byron Wien has spent his career advising investors at some of
Wall Street’s top firms including Blackstone and Morgan Stanley,
where he was chief US investment strategist for 21 years.
- In an interview with the TD Ameritrade Network, Wien broke down
how a 40-year old should be investing their money right now.
Wien is no stranger to Wall Street.
The 86-year-old vice chairman of Blackstone’s private wealth
solutions group has built his career advising other investors at
some of Wall Street’s biggest firms, including Morgan
Stanley. He’s also well known for his annual list of 10
predictions for the markets.
And so, if you have $50,000 that’s just waiting to be put to
work in financial markets, Wien has some great ideas on how best to
go about it.
The advise below was given during an interview with
the TD Ameritrade
Network, which specifically asked how a 40-year-old should
invest that amount of money.
Without further ado, here are Wien’s recommendations:
- 40% long only as follows: 5% in global multinationals, 15% in
US stocks, 10% in emerging markets, 5% in Europe, and 5% in
- 30% in alternative assets.
- 15% in equity-like fixed income: mortgages, leveraged loans,
mezzanine financing, emerging-market debt and high-yield debt.
- 15% (the remainder) in cash.
- No Treasurys or high-quality corporates.
As for specific stocks, Wien declined to talk about individual
companies, but said: “some of the FANG stocks, in the correction of
the fourth quarter, came down to attractive prices.”
He expects the ongoing rebound to continue and earn the S&P
500 a 15% return this year — a reversal of its first annual
decline since the financial crisis.
Wien is also betting that the economy will remain conducive
enough to support company earnings. In a recent
interview with Business Insider, he said he didn’t expect the
next recession to arrive before 2021.
However, when it inevitably arrives, the traditional fiscal and
monetary tools that were used to fight previous recessions may not
be as effective, Wien said.
Source: FS – All – Economy – News
Investing guru Byron Wien built a legendary career by growing other people’s money. Here’s where he would invest ,000 today.