Asset Allocation Strategies: Building a Strong Investment Portfolio

We have a fascinating discussion with Sebastien Page, Head of T Rowe Price's global multi-asset division, about the new regime we find ourselves in. But what exactly does this regime change mean? Well, for the first time in 40 years, we have seen a higher high in fed funds, marking the end of the era of near-zero interest rates. This shift has significant implications for portfolio construction and diversification strategies. In this interview, Sebastien Page shares his insights on how this new regime differs from previous periods and how it requires us to rethink traditional approaches to asset allocation. Join us as we explore the strategies and considerations for building and protecting your wealth in this changing financial landscape.
00:00 Hello
00:46 Introduction
02:00 Interview with Sébastian Page
23:05 One Investment
24:46 Action Point
WEALTHTRACK episode 2029 originally broadcast on January 12, 2024
More info: wealthtrack.com/a-new-market-...
The View from the Knife's Edge: A New Market Regime: www.troweprice.com/corporate/...
Bookshelf: Beyond Diversification: What Every Investor Needs to Know About Asset Allocation
amzn.to/3U4a2mB

[@TheChinaPlay]

Happy New Year, Consuelo and team! I’ve been watching the show for what feels like over a decade. It’s part of my weekend routine. Thanks for your great work!

[@davemiller704]

Another great interview Consuelo, I love the clarity of your questions in unpacking Seb's world view.

[@davidfolts5893]

Thanks, WealthTrack; it makes me smile when one of your new videos pops up in my feed.

[@andreyb.1835]

Thank you for this great interview!

[@nicholas5396]

Thumbs Up for continuing the great content!

[@gabrielenicolini5988]

Hi Consuelo - Happy New Year from Italy to you and Wealthtrack Team! So appreciated your excellent interview selections and clarity!

[@mohammedsharif2651]

Fun interview to watch. 😀🙏👏❤️

[@amatuer2]

Very good program Consuelo , keep up the informative program :)

[@missouri6014]

I believe he is talking about having a portion of your stocks and another portion of your bonds in buffered ETFs And I think that is what he meant by sleeves Because that is how The Buffer, ETF companies present it I agree with him and in my 6040 mix about 10% of the 60 is in buffered ETFs and on the bond side I have about half of the 40% into buffered ETFs Are buffered ETFs are basically the S&P 500 with the And they buffer the downside by a percentage usually 15 or 20% depending upon what you pick These are great, and there are no fees or commissions, other than the ER

[@PassivePortfolios]

What worked in 2022 when stocks and bonds went down together - a short term Treasuries and CD ladder, using 1-6 months maturities. Plus Vanguard federal money market This strategy was a great diversifier to stocks and bond funds which became highly correlated when interest rates went up, It provided measly returns and stability of principal, but it let investors sleep well at night to ride out the storm.

[@davidherman1041]

Being vague reduces accountability

[@davidherman1041]

He saves the good stuff for paying clients.

[@davidherman1041]

@ToSaveANationDotCom this format makes it look less like an advertisement.

[@carstars]

Factor and manger selection risk likely don’t return the needed return or reduced risk to overcome the fees. Boring investing confirmed by watching this episode.

[@theresamiller4683]

Hey everyone! I've been thinking a lot about our investment portfolios lately. Do you guys pay much attention to asset allocation?j

[@PH-dm8ew]

What is a 10% "sleeve" in a vintage?

[@KarlGrabe955]

Putting well-earned money into the stock market can be over emphasized for first-time investors, unlike a bank where interest is sure thing! Well, basically times are uncertain, the market is out of control, and banks are gradually failing. I am working on a ballpark estimate of $5M for retirement, and I have a good 6-figure loaded up for this, could there be any opportunity for a boomer like me? I'm nearly 60.

[@765lbsquat]

He sounds like Dr. Nick from the Simpsons

[@aaron159r2]

He's is Canadian. Sounds like Jordan Peterson.

[@steveagnew3385]

I do enjoy hearing what fund managers say... and what they do not say. The T Rowe Price global equity funds have not done very well at all and charge 1.1%/yr. The s&p500 etfs beat these funds and only charge 0.03%/yr. The most important investment risk is poor advice...

[@johnyjsl9219]

as soon as he said those hedging strategies depends on finding good managers, it turned me off. Better just to stay diversified in index funds. I just don't feel I learned much from this episode.

[@eikoGoldstein]

I agree. 60/40 or 70/30 is fine for just about everyone. The more you fuss, the more your costs increase. Just set it and forget it. Don’t be your worst enemy. Buy a few index funds and ignore these experts. Good luck, all!

[@DexterHaven]

This guy seems annoying and confused. First, he shouts rather than speaks; second, he relies on figures of speech "we need to rethink," which is pap and takes refuge in mindlessly repeating Wall St. words like "hedged equity strategies," 4:46 Then he weasels with words like "perhaps." He's a noisy jargon machine; whereas, if he really knew what he was talking about, he could calmly describe the FACTS and dynamics and make it plain. He would not need to refuge in such vagueness, as he does.

[@TheChinaPlay]

Sounds like you want someone to just tell you what to do and think. While it’s not great tv, he’s talking in probabilities and potential outcomes. I can see how that’s annoying but that’s the reality of finance. I’m guessing the following phrase annoys you: “past results do not guarantee future returns”

[@celestialfix]

He’s kind of a Mohammed El Elian type of guy….never a bull and his comments are somewhat obscure.

[@SMTraz]

Sebastien is a permabear in a new bull market, which means he is confused as hell.

[@frontiermusings]

Why is he shouting? I had to turn it off. Ugh!