About this episode
Are current market conditions too good to be true? Chief Market Strategist Troy Gayeski shares the key takeaways from his latest strategy note on why fear of a “GFC Part II” is a suboptimal reason to hold on to cash.
Troy joins Content Strategist Harrison Beck to examine the current economic landscape, how advisors are addressing investor concerns about asset allocation and the reasons to consider redeploying cash into select alternatives.
“It’s really important to differentiate between where things appear too good to be true and where they’re just factually true.” –Troy Gayeski
Transcript excerpt
Harrison Beck: This is The Takeaway with Troy Gayeski, a podcast from FS Investments. We sit down with Chief Market Strategist Troy Gayeski to get at the key insights in his latest strategy note—what’s happening in the economy, and what investors may want to do about it. I’m Harrison Beck, FS Investments Content Strategist. I’ll take Troy through today’s top questions so that you can get the takeaway. Welcome, Troy.
Troy Gayeski: Hey, Harrison. How are you, buddy?
Harrison Beck: I’m doing good. So Troy, you’ve been traveling around the country. You’re talking to advisors and financial professionals. What’s a conversation you’ve had recently that really stood out to you?
Troy Gayeski: You know, I’ve probably spent more time the last six to eight weeks reviewing advisor asset allocation models than probably the prior three to six months combined. And I think one of the things that keeps coming up as we meet with advisors and talk about the strength of middle market private equity (particularly in comparison to mega cap buyout or LBO, or how our solutions compare and contrast to others) is really trying to figure out, if you’re going to make an allocation to a core middle market private equity holding, how do you best compliment that? Is it with mega cap buyout? Is it with a secondary only focused fund? Do you go international or still lean more heavily into the U.S.?
So that has been a big component, really the last six, eight weeks. Like—Mr. and Mrs. Advisor gets that you should have middle market private equity as a core holding: how do you build around that?
And it’s really interesting to see the different solutions that advisors come up with on their own. Some may lean towards brand name, mega cap, buyout shops, others may lean towards more venture capital or secondary focused funds, or those that are a little more upper middle market but still not mega cap LBL buyout. So that’s been really fun to work through the last couple of weeks.
