Where to Put Your Money Post-Election: Bel Air Investment Advisors Partners with Bloomberg

This October, as the races for US president and pivotal Congressional seats reached their climax, Bel Air Investment Advisors (“Bel Air”) partnered with Bloomberg to present “Where to Put Your Money Post-Election.” This insightful panel was organized to empower high-net-worth investors with strategies to navigate the financial landscape following November’s elections.

Bel Air Chairman, Partner, and Co-Founder Todd Morgan explored strategies to tackle potential market volatility, regulatory shifts, and tax changes expected under the next administration.

The panel also featured the following industry leaders who offered their insights on the key themes shaping today’s markets:

• Katie Koch, President and CEO of TCW
• Jamie Montgomery, Co-Founder and Managing Partner of March Capital
• Jerome Schneider, Head of Short-Term Portfolio Management at PIMCO
• Stuart Paul, U.S. Economist at Bloomberg

Market Outlook and Strategic Positioning

Morgan opened the discussion by exploring the current economic and market environment. He likened the current era to the “Roaring 20s,” noting the strength in U.S. equity markets despite rising geopolitical pressures and heightened valuations. Morgan emphasized consumer resilience, with trillions held in cash accounts that contribute to market stability.

Shifting to the panel’s main theme, the 2024 US elections, Morgan emphasized that a Trump victory and a Republican sweep could ignite “animal spirits,” fueling a broad market rally. His prediction has proven correct, with the market rising following the November results. However, Morgan also warned that such a scenario may increase the deficit and drive up inflation in the long term.

Koch added her perspective on this complex economic climate, underscoring the importance of maintaining liquidity. Katie cautioned that the current market pricing appears overly optimistic and suggested that holding cash and anticipating market shifts is as important as taking action. “The money is sometimes in the waiting,” quoting the view of Berkshire Hathaway’s Charlie Munger.

Technology and Private Credit

Montgomery turned the conversation to the technology sector. He pointed out that a significant share of the S&P 500’s growth is concentrated in a few tech giants and highlighted that the early stages of a tech renaissance are inevitably marked by volatility, making liquidity essential for seizing on opportunities ahead.

Koch also discussed the growth of private credit. With it becoming an increasingly viable investment vehicle, disciplined underwriting and selectivity are essential to mitigate risks in this emerging field.

Risks and Positioning for 2025

Schneider emphasized the need for diversification in both public and private credit markets, with a preference for shorter-term, high-quality assets, especially at the front end of the yield curve. He noted that long-term concerns like inflation, liquidity, and relative asset value require close attention.

Returning to the primary question of “where to put your money in this environment”, Morgan concluded with a reminder of the importance of a flexible, diverse portfolio. He voiced that the geopolitical climate is much more likely to impact long-term investment strategy than the election. He advised investors to prepare for geopolitical uncertainties and to consider holding cash reserves to take advantage of upcoming opportunities. The key, he said, is an asset allocation that lets wealthy investors sleep well at night, with the flexibility to act in the face of change.

The panel collectively recommended a cautious, adaptable approach to asset management, recognizing that the evolving political and economic landscape will bring both new challenges and investment opportunities as we head into 2025.