Recently, we covered this important topic at our 2023 client summit.

Get the details about our CMAs

Watch the recording from the summit here:

You’ll learn:

• Elements of this equation on which our methodology is based: Risk-Free Rate + Risk Premium = Asset Class Total Return
• Our methodology, which we refer to as a triangulation approach because it includes the three proprietary models illustrated below that are designed to check and balance each other

• The value of factoring correlation among asset classes into the methodology
• How our capital asset pricing model reverse optimization differs from a traditional optimization model (that uses risk, return and correlations for asset classes and establishes an efficient frontier) by starting with optimal asset allocation weights based on what the market is telling us, and working backwards
• The value of our model’s outputs when comparing portfolio risk on a relative basis
• Why it’s important when evaluating asset classes to view risk as range of potential outcomes, not just a potential downside

More recorded insights featuring Segal Marco subject matter experts are coming soon

This is the first recorded insight in a series we’re calling SMART, which stands for Segal Marco Advisors Research & Trends.

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