Building or rebalancing your portfolio and wondering what investments to consider next?
Here’s what leading experts featured on BNN Bloomberg say investors should consider adding and dropping from their portfolios today.
Jay Bala | CEO, Senior Portfolio Manager, AIP Asset Management
In your opinion, what single investment should investors own right now — and why?
SpaceX (ahead of IPO and index inclusion).This is not a traditional valuation story. At scale, SpaceX becomes a mandatory holding for global indices, which means passive funds will beforcedbuyers. That creates a structural demand tailwind that investors cananticipateand position around.
From your perspective, what is one investment investors should consider dropping from their portfolios — and why?
Reduce your cash position. Long term, cash has always been a bad investment given that inflation of 2-3% means your cash decreases in value every year. Allocate to equity or alternative fixed income which has the potential to generate higher returns than inflation.
DISCLAIMER: AIP’s XIPO Fund owns SpaceX.
