There are only two asset classes: ownership and debt

Roula Khalaf, Editor of the FT, offers a free Editor’s Digest newsletter filled with her favorite stories. In the past 55 years, the investment management industry has evolved, with asset allocation becoming a prominent topic. The distinction between ownership and debt assets is crucial, with each offering different risk and return characteristics. The selection of a targeted “risk posture” is highlighted as the most important decision in portfolio management, determining the balance between capital preservation and growth. In today’s market, non-investment grade debt is seen as a competitive alternative to equities, offering returns of 7 to 10 percent with more limited volatility.

https://www.ft.com/content/15998397-48dc-4afd-acbb-19ff08416e5b

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