Dear Allocator: Is it OK to own 100% stocks?
We recently polled our Nebo clients: “What one investment question would you want to ask Ben Inker, Co-Head of GMO Asset Allocation, today?” We got some classic reactions, like “Ooh! Ooh! This is like walking me into the Eccles Building and saying, ‘If you could ask Chair Powell one question, what would it be?’” and “Interesting. It's kind of like a ‘Dear Abby’ advice column. I like it.” We also received a lot of interesting questions about this “Ask an Allocator” opportunity, and we will try to answer them in time. Provided in this edition is Ben’s answer to one of our favorites from Rich Toscano, Investment Manager at Pacific Capital Associates and self-proclaimed “value investing nerd.”
If a client has no volatility limit and is sufficiently early in their glidepath, Nebo will often recommend a 100% allocation to stocks. But while this makes sense given math, past returns, etc., a little paranoid voice inside my head questions whether it’s prudent to be 100% allocated to a single asset class. What would Ben say to that paranoid voice?
Read Ben's Answer by downloading the whitepaper.
Dear Allocator: Is it OK to own 100% stocks?
We recently polled our Nebo clients: “What one investment question would you want to ask Ben Inker, Co-Head of GMO Asset Allocation, today?” We got some classic reactions, like “Ooh! Ooh! This is like walking me into the Eccles Building and saying, ‘If you could ask Chair Powell one question, what would it be?’” and “Interesting. It's kind of like a ‘Dear Abby’ advice column. I like it.” We also received a lot of interesting questions about this “Ask an Allocator” opportunity, and we will try to answer them in time. Provided in this edition is Ben’s answer to one of our favorites from Rich Toscano, Investment Manager at Pacific Capital Associates and self-proclaimed “value investing nerd.”
If a client has no volatility limit and is sufficiently early in their glidepath, Nebo will often recommend a 100% allocation to stocks. But while this makes sense given math, past returns, etc., a little paranoid voice inside my head questions whether it’s prudent to be 100% allocated to a single asset class. What would Ben say to that paranoid voice?
Read Ben's Answer by downloading the whitepaper.