The View From Apollo Can Private Markets Be the Alternative to Lofty Public Market Valuations?
10 snips
Jan 16, 2025 In this enlightening discussion, Alex Wright, a Partner and Global Wealth Strategist at Apollo Global Management, reveals insights on navigating elevated public market valuations. He emphasizes the essential role of private markets in diversifying wealth portfolios, particularly through private credit and equity. The conversation touches on investment resilience as 2025 approaches, spotlighting infrastructure as a crucial asset class and the exciting opportunities in AI-driven data centers. Beyond finance, Alex and his co-host share personal holiday highlights and a passionate love for soccer.
AI Snips
Chapters
Transcript
Episode notes
60-40 Portfolio Risks
- The classic 60-40 portfolio strategy faces heightened risks in 2025 due to overvalued equities and bonds.
- Diversification, including rebalancing and considering alternatives, is crucial for mitigating these risks.
Diversification with Private Markets
- Diversify your portfolio by considering private markets as an alternative to overvalued public markets.
- Private markets offer potential alpha, volatility reduction, and access to a wider investment universe.
Private Credit Outlook
- Private credit offers higher spreads over public credit, especially in the current higher-for-longer interest rate environment.
- Investors should focus on first-lien, large-cap companies, and newer vintages for better downside protection.