Russ Koesterich, Chief Investment Strategist at Blackrock, was our guest last week at the 37th annual conference of the South Florida Financial Planning Association (FPA). Russ talked about building portfolios in a world of low interest rates and longer lifespans.
BlackRock is the world’s largest asset manager with $5.1 trillion (yes, that’s a “t”) in assets under management. Their expertise extends to every region around the world, with 135 investment teams in 30 countries sharing their best thinking and seeking better returns. Their mutual funds, exchange traded funds (ETFs) and other investment products are available to investment managers and firms like ours.
Russ discussed the unprecedented challenges facing advisors and financial planners, including historically low interest rates, multi-decade retirements and the decline of private pensions. He explored the economic and financial landscape and built a case for a different approach to managing client portfolios.
By the way, investors and retirees would probably find his outlook somewhat grim.
The takeaway: To get decent returns, you’ll need to move beyond bonds, which may earn only 2% or so per year, and big U.S. stocks, which are expensively-priced. Foreign stocks and non-U.S. Government bonds need a bigger place in your portfolio. We’ll all be hard at work – and looking further afield – to build your portfolio so you get the returns you need.