The Takeaway with Troy Gayeski: Too good to be true?

Our Chief Market Strategist shares the key takeaways from his latest strategy note on why fear of a “GFC Part II” is a poor reason to hold on to cash.

Listen on Spotify
June 13, 2024

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.

This information is educational in nature and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. FS Investments is not adopting, making a recommendation for or endorsing any investment strategy or particular security. All views, opinions and positions expressed herein are that of the author and do not necessarily reflect the views, opinions or positions of FS Investments. All opinions are subject to change without notice, and you should always obtain current information and perform due diligence before participating in any investment. FS Investments does not provide legal or tax advice and the information herein should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact any investment result. FS Investments cannot guarantee that the information herein is accurate, complete, or timely. FS Investments makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

Any projections, forecasts and estimates contained herein are based upon certain assumptions that the author considers reasonable. Projections are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The inclusion of projections herein should not be regarded as a representation or guarantee regarding the reliability, accuracy or completeness of the information contained herein, and neither FS Investments nor the author are under any obligation to update or keep current such information.

All investing is subject to risk, including the possible loss of the money you invest.

Troy A. Gayeski, CFA

Chief Market Strategist

Search our site