Investment Pro Pushes Clients to Take More Risk: Defense, Ag Tech, Infrastructure
Alex Chaloff, CIO of Bernstein Private Wealth Management, encourages clients to take more risk than they prefer, focusing on defense, ag tech, and infrastructure. He believes strong S&P 500 earnings growth this year could resolve market uncertainties.
According to a report from Barron's, Alex Chaloff, chief investment officer and head of investment and wealth strategies at Bernstein Private Wealth Management, says he likes to push his clients to take more risk than they might prefer.
Details
Chaloff notes that geopolitical and economic uncertainties have many investors on edge, and price/earnings ratios for U.S. market leaders are at historic highs. Still, he believes focusing on specific sectors can be rewarding.
Context
Chaloff recommends investing in defense, ag tech, and infrastructure sectors, seeing them as attractive opportunities. He adds: "If we get earnings growth rates for the S&P in the mid- to high teens or low 20s this year, the rest will take care of itself."
What It Means for Investors
The recommendation comes at a time when many investors are risk-averse due to geopolitical tensions and inflation. However, Chaloff believes calculated risk in certain sectors could pay off.
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