- Consider Flipping Your 60/40 Portfolio to 40/60 as Bonds Become More Attractive Than Stocks “The U.S. stock market was getting crushed by a sharp selloff in the first full trading week of the new year, as rising Treasury yields weighed on some of the largest technology companies amid concerns that President-elect Donald Trump's future tariff policies could complicate the Federal Reserve’s plans to continue cutting interest rates in 2025. Against that backdrop, Vanguard, the world’s second-largest asset manager, has suggested that investors rethink a long-held rule of thumb for portfolio allocation in the new year - by swapping the classic 60/40 portfolio for a more conservative allocation in fixed income.” (Morningstar)
- Goldman Sachs to Deepen Exposure to Booming Private Credit Industry “'There is significant demand from our investing clients for private credit and private equity — from investment grade and leveraged lending to hybrid capital and asset-backed finance as well as equity,’ chief executive David Solomon said, adding that the bank would seek to ‘channel the growing synergies between our clients in global banking and markets and those in asset and wealth management.’” (Financial Times)
- What’s Missing from the ’25 Predictorama “Private Markets for Grandma: The industry is gonna PUSH SO HARD and I’m gonna YELL SO LOUD. I’m not against the little guy getting access to good things. I am against the systematic plundering of retirement accounts by people who want to UNLOAD their private securities. It’s a very, very simple question. If you’re Apollo and you source $10B in deals in 2025, some of them are going to be GREAT and some of them are going to be AWFUL. Which bucket do you think the big institutions get first dibs on? FOREVER.” (davenadig.substack.com)
- Private Markets, Public Access: Hamilton Lane to Provide Institutional Quality Investments to Retail Investors “Hamilton Lane (HLNE) and Republic announced a partnership to provide retail investors access to private market investments through digital blockchain-based solutions. The initiative aims to democratize access to a $13 trillion global market with low investment minimums and enhanced liquidity compared to traditional private market funds. Hamilton Lane, managing $947 billion in assets, reports that private markets funds have outperformed public market equivalents in 19 of the last 20 years. The first offering is expected in 1H 2025.” (Stock Titan)
- Allianz Bundles Buffer ETFs into Fund of Funds “The Minneapolis-based subsidiary of German insurance giant Allianz Group, whose 35 U.S.-issued ETFs are entirely buffered products, has rolled out two funds of funds that invest in buffered ETFs that mature on rolling schedules, according to a Jan. 8 statement. The structure effectively eliminates the defined outcome periods that come with traditional buffered ETFs. The AllianzIM 6 Month Buffer10 Allocation ETF (SPBX) and the AllianzIM Buffer20 Allocation ETF (SPBW) are laddering underlying buffered ETFs that are staggered to reset on monthly intervals.” (etf.com)
- US Stocks and Bonds: What Inflation Really Means “The specter of inflation is again looming over the markets. Bond yields have surged, and stocks have been stuck in the doldrums over that same period, unable to break out of a holding pattern. Market watchers have pointed to a slew of reasons for the malaise, from concerns about a growing federal deficit to regular end-of-year portfolio reallocation to anxiety surrounding a much-reduced outlook for interest rate cuts from the Federal Reserve in 2025. Inflation underpins many of these explanations. Problematic price pressures appeared to be vanquished last fall, but it currently looks like they might stick around for at least another year.” (Morningstar)
- CRE Industry Baffled by DOJ’s Collusion Allegations Against Landlords in RealPage Suit “Cash may be king in commercial real estate, but knowledge is power — and prosecutors at the U.S. Department of Justice believe that power has become too concentrated among multifamily landlords. Federal attorneys added six landlords or property managers to its antitrust case against RealPage earlier this month. In the amended complaint, the government outlines how competitors were engaging in anticompetitive practices by meeting to trade information about rates, vacancy and other data.” (Bisnow)
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