Bloomberg recently released a report titled “Where are you currently investing a million dollars?” highlighting the current confusion in the world of investments. Questions arise about the valuation of artificial intelligence companies, the demand for Treasury bonds, and whether investors should focus solely on the American markets or explore opportunities abroad, reported Al-Qabas Daily.
To obtain ideas for diversifying million-dollar investments, Bloomberg asked investment experts to share their best suggestions. Their recommendations varied, ranging from following a strategy of investing in small-cap companies to finding the right balance of risk and returns through fixed income investments.
Some experts also suggested venturing into stocks in emerging markets such as Vietnam and the Philippines. Dana Doria, co-CEO of Investnet, emphasized the potential for significant returns from investing in small-cap companies, noting that these companies are currently undervalued compared to their larger counterparts. With expectations of interest rate reductions from the US Federal Reserve later this year, investing in small companies, while diversifying the portfolio, could help offset risks.
On the other hand, Michael Rosen, CEO of Angelis Investments, believes that the balance between risk and fixed income is compelling in the short term. He recommends allocating two-thirds of the million dollars to bonds, including high-yield bonds and loans, which offer attractive returns compared to long-term returns in stocks.
The remaining third can be invested in stocks, particularly in US technology and healthcare sectors, as well as in developed stock markets overseas, such as Europe and Japan. Christine Philpotts, Director of Emerging Markets Portfolios at Arable, suggests exploring emerging markets such as Vietnam and the Philippines. She expects Vietnam to become a strategic industrial center for various goods, including electronics and electric vehicles.
In the Philippines, Philpotts highlights the country’s economic growth driven by the influx of companies and its competitive advantages such as English-language proficiency and the development of call centers. Meanwhile, Michael Durso, Chief Investment Officer at Shorehaven Wealth Partners, sees compelling opportunities in investing in private markets, particularly in private equity and private credit. With interest rates on the rise, investment fund managers will be more cautious and intelligent in allocating capital.
Durso also mentioned using exchange-traded funds for exposure to public markets, asserting that the risk profile remains consistent. Depending on clients’ objectives, timing of investments, and risk tolerance, up to 10% of portfolios could be allocated to private markets. As investors navigate the current investment landscape, these recommendations provide some insights to consider when diversifying million-dollar investments. It is important for investors to conduct thorough research and seek professional advice to tailor their investment strategies according to their individual goals and risk appetite.
