US Equities (^GSPC, ^DJI, ^IXIC) are moving higher on Tuesday afternoon as the broader market anticipates the Federal Open Market Committee not to move interest rates following its two-day meeting. Alger Director of Market Strategy Brad Neuman joins Yahoo Finance to discuss potential plays for investors as the Federal Reserve appears to embrace a higher-for-longer approach.
Neuman suggests that investors consider alternative asset managers: “So here I’m talking about the public equities of companies that invest in private equity. The case for these stocks is that institutions like pensions endowments have like a 20% to 30% of their allocation into privates, but the mass affluent in this country is about a 3% allocation. In fact, just recently this week CalPERS announced they would be 40% private markets.”
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Editor’s note: This article was written by Nicholas Jacobino
