The 9th Annual Private Wealth Southern California Forum, hosted by Markets Group at The Maybourne Beverly Hills, brought together leading investment professionals to address strategic responses to the Federal Reserve's recent interest rate cut. Dr. Alyce Su, Chief Investment Officer at PIMCO Partner Family Office, headlined a panel discussion focused on navigating markets during what she described as a "non-recessionary easing cycle" that historically supports both fixed income and equities. This environment presents a critical opportunity for investors to adjust their portfolios with precision.
Dr. Su emphasized the importance of disciplined asset allocation in the current environment, outlining a three-pronged tactical approach for investors. Her strategy includes locking in bond yields through short-duration investment-grade credit, long-duration municipal bonds, and hybrid securities. She also recommended leaning into equities with targeted allocations to the S&P 500, Russell 2000, and specific sectors including Artificial Intelligence, financials, industrials, power, and defense. This dual focus aims to capture income from fixed income while positioning for growth in equity sectors poised to benefit from current economic conditions.
The investment executive stressed the value of maintaining diversification through alternatives, particularly hedge funds, for long-term value capture. "This is a key moment for disciplined asset allocation: capturing bond yields, investing in sectors tied to capital expenditures, and maintaining diversification through alternatives," Dr. Su stated during the forum. The panel discussion addressed broader market themes including global trade risks, labor market dynamics, interest rate trajectories, and the potential impact of the new OBBBA fiscal stimulus bill. These factors collectively shape the risk landscape that investors must navigate.
Dr. Su also provided insights on global investment trends, highlighting Hong Kong's emergence as a leading IPO hub and its growing role as a public-market parallel to the U.S. private equity ecosystem. The forum, which gathered family offices, institutional investors, and wealth advisors, underscored Southern California's rising influence as a global financial center. The event provided regional investors with access to institutional-grade insights and expertise at a critical juncture in market cycles. The strategic guidance offered by Dr. Su and fellow CIOs comes as investors seek to build portfolio resilience amid ongoing macroeconomic uncertainty, shifting fiscal policy, and evolving interest rate expectations. For more information on the forum host, visit https://www.marketsgroup.org.
