By Robert Seawright, Above the Market
Every year Barron’s reports on the Penta asset-allocation survey of 40 leading wealth management firms (such as Barclays, Fidelity, Goldman Sachs, JPMorgan, LPL, Morgan Stanley, Northern Trust and the like), which outlines in broad terms what those firms’ base recommended portfolios look like. The new survey is noteworthy in that overall allocations to stocks rose to an average of 51.1 percent, up from 48 percent at this time last year and 45 percent in early 2012; fixed-income holdings continued a two-year decline, now at an average 25.8 percent, down from 29 percent last year and 34 percent in 2012; and recommended hedge fund and private-equity allocations, recently “the expensive disappointments of the portfolio” and subject to widespread criticism, are up to an average of 14.1 percent from 12.5 percent last year, with all alternatives (including real estate and commodities) now weighing in at an average allocation of 20.4 percent. A more detailed breakdown is charted below.
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