Larry Pink, CEO of the world’s largest property management company – Belkruck, published the annual letter of investors on Monday, which provokes great interest around the world.
Pink introduced a new long -term investment strategy. According to him, the basic theory for managing a standard portfolio, which includes a 60% distribution of shares and 40% bond has passed from the world. Instead, Larry expects that “the future standard portfolio may look more like 50/30/20-shares, bonds and private assets such as real estate, infrastructure and private credit.”
Pink admitted that private assets carry greater risk, but said the alternative case offers inflation, stability and applause.
An economic anxiety that will pass
In a 27 -page letter, he carefully marchs between economics and politics and does not explicitly mention President Trump but talks about his policy and tries to calm down and say we are in a moment of economic anxiety to pass. “I hear it from almost every client, almost every leader – almost every person – that I talk to: they are now anxious about the economy than any other moment you can remember. I understand why. But we have gone through such moments in the past. And somehow, in the long run, we understand things.”
Pink does not refer in his letter to the topics they have written in the past, such as ESG and Diversity. Instead, he talks a lot about investment management, private investment sector and trends that concern the US economy. He added, for example, that capitalism worked for “too few people” and explained that he wanted to give more investors access to those private markets – an investment field in which Balkkrock operates more in the past year. “Imagine a child born today that his personal wealth has grown in accordance with the wealth of America. This is how economic democracy can be seen: a country where everyone has a new way – investing – chasing happiness and financial freedom,” he wrote.
“The US has enjoyed the fact that the dollar has served as the global reserve currency for decades. But it is not guaranteed that it will last forever, “Pink warns. Also, he says that” if the US won’t get control of its debt, if the deficits continue to rise, America may lose this position to digital assets like Bitcoin. ”
Another topic in which it touches is “energetic exercise”: the world is dealing with increasing demand for energy that cannot only be filled with renewable energy, he said. Pink claims that the solution is in nuclear energy – an idea that is gaining momentum as the demand for electricity is inflamed by AI.
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