The Meb Faber Show - Better Investing Apollo's Alex Wright on The Role of Private Markets in Modern Portfolios | #583
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May 23, 2025 Alex Wright, Global Wealth Strategist at Apollo, dives into the fragility of public markets and the promising landscape of private investments. He highlights the challenges posed by high valuations and limited diversification in traditional portfolios, advocating for a shift towards private equity, credit, and infrastructure. Alex shares insights into how these private assets can enhance diversification and provide unique opportunities in today’s evolving investment universe. His market outlook offers valuable strategies for navigating economic uncertainties.
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Public Market Concentration Risk
- The US public market is heavily concentrated with few mega-cap stocks dominating valuations.
- This concentration reduces diversification and exposes investors to narrow market risks.
Use Private Markets for Diversification
- Private markets provide diversification by accessing a broader universe, including companies not publicly traded.
- Investors should consider private assets to improve portfolio diversification and potential returns.
Democratizing Private Market Access
- Accessibility and liquidity concerns historically hampered private market investing.
- Modern evergreen funds with lower minimums and more liquidity are democratizing private market access.