From Fixed Income to Bitcoin: Private Wealth DC Metro Forum highlights

I recently attended the Private Wealth DC Metro Forum in Washington DC, United States, organized by Markets Group. The event is part of a series of forums held around the world with the goal of integrating the local HNW investment communities, including CEOs, CIOs, research managers, investment staff, among others.

This time, I participated as a panelist for the Fixed Income segment, called Trends Shaping Today’s Landscapeand took the opportunity to highlight the main topics discussed. Check it out:

• The consensus is that this market is more attractive due to relatively higher yields and the high S&P valuations. The most liked assets were higher quality and shorter maturity. Some include investment-grade bonds, Collateralized Loan Obligations (CLOs), and Mortgage-Backed Securities (MBS).
• Regarding credit spreads, it was observed that they are tight, especially for high-yield bonds, so there were some comments that it might be interesting to have cash available in case spreads become more attractive.

• Another topic addressed was commercial real estate. There is a general caution in offices and retail, but many opportunities in shed (self-storage), med (including assisted living) & bed (student housing).

• The third subject discussed was bitcoin, considering the recent ETF approvals. A specialized company suggested a portfolio allocation between 2 and 5%, while near 10% for clients with higher risk tolerance.

• However, the tone of the discussion was one of caution, as is not cleared by major players (asset managers, brokerages, etc) for clients, and Most attendees (RIA, strategists, and investment managers) mentioned they had answered questions from clients but have not actively offered Bitcoin or crypto.

• The estimate is that there will be a $30 trillion wealth transfer in the coming years, mainly to women, opening opportunities for younger generations in wealth management. The importance of diversity and how future generations should be prepared to serve clients were also discussed.
• Regarding Artificial Intelligence, the consensus was that it will probably be a productivity enhancer, not a job killer, mainly because many people are retiring in this industry and there’s no new comers enough to replace those positions.

• There was a very interesting discussion with Steve Eisman, from "The Big Short". He sees a very good environment in the US, with no major credit issues, except in CRE.
• He notes generally good balances among US banks, companies, and consumers. Therefore, he is optimistic about markets due to due to secular trend of US reindustrialization in next 10 years, which includes onshoring, greenification (or new energy sources), and AI (including data centers and the need to update the electrical grid given the massive demand for energy).

Listen to the audio below and learn more:

If you have any questions, please reach out to your Relationship Manager.