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Family offices move money out of stocks and into private markets - TL;DR CNBC

Family offices move money out of stocks and into private markets

Publishing timestamp: 2023-11-28 14:57:51


Summary

The article discusses the results of a survey that shows family offices have more of their money invested in private markets than the public stock market. The survey also highlights the increasing interest of family offices in alternative assets such as real estate and commodities. Family offices plan to further increase their allocations to private markets, particularly private equity funds and direct private equity deals. The article notes that family offices have shifted towards private equity and direct deals over the past decade, attracted by the potential for better returns and less volatility compared to stocks. However, it remains uncertain whether this strategy will continue to be successful, as private equity funds face challenges such as tight financing and lack of exits. Family offices also express caution about the year ahead, citing recession risk, China tensions, and excessive Fed tightening as financial risks. They hold a significant amount of cash and may expand their bond holdings.


Sentiment: NEUTRAL

Tickers: .SPX

Keywords: breaking news: marketswealthmarketss&p 500 indexbusinessbusiness news

Source: https://www.cnbc.com/2023/11/28/family-offices-move-money-out-of-stocks-and-into-private-markets.html


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