Alternative Investment Strategies for 2014

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Dec. 27 (Bloomberg) –- TIAA-CREF Global Investment Strategist Dan Morris discusses his alternative assets strategies for the new year with Deirdre Bolton on Bloomberg Television’s “Money Moves.” (Source: Bloomberg)

If you are a teacher or researcher or work in medicine you know it well.

My next guest is a global investment strategist with that company, almost $550 billion with assets under management.

Dan, great to see you.

You deal with advisors, internally, externally, cio's of basically all the major financial institutions.

What is the tone light as we head towards the new year?

Everybody is thinking about the impact of quantitative easing and tapering and how that relates specifically to alternative investments is to have some idea of what the impact is going to be on equity and fixed income markets.

It is trickier to tease out to what degree the really low interest rates that we have had, how they have affected these asset classes, and as importantly, what is the unwinding going to do.

When you speak of more money in alternative assets, this is a trickier to make that argument because the s&p 500 is up something like 25%. it is difficult to steer money out of the stock market.

It has been a good year for equities.

I think especially for institutional investors who are looking for something that is more certain over a longer horizon, perhaps with quite a bit less volatility, they're still going to be an underlying demand for alternative assets to some degree irrespective -- you see it going -- growing?

Yes, absolutely . here that is a pretty big umbrella.

He left private equity and real estate and hard assets.

-- you have private equity and real estate and hard assets.

The key thing in any portfolio is to keep in mind that precipitation.

We aren't necessarily thinking -- picking one over the other.

We think that they are going to offer something effective.

I think of some of these harder assets which we don't talk about, quite rightly, as much as we do the more traditional ones i private equity or real estate.

Do you see a lot of demand for hard assets?

With timber we have vehicles that are relatively unique in the industry because it is something where you can see how the industry has changed over the last decade or so.

It has become a market where you need to become much more innovative about how you manage the assets.

I think we're focused on looking at a do that.

We are citing a field where there is demand and looking for new ways of getting returns.

A related theme -- you see your fortune 500 committees basically buying of farmland just in case they had to have water, or all kinds of investing reasons to buy farmland.

-- interestingly's -- interesting reasons to buy from them.

In the past even if you saw the appreciation of farmland it was hard to take it vantage of that.

We focus on investing in farmland and investing in companies that the light input to the farmland.

I think one is an attractive about the market the last couple of years -- what is changes that you see the big appreciation of prices in the u.s. wondering whether or not that is going to continue and perhaps you you need to look at other markets, for example, brazil, where there may be more potential.

Biggest surprise for you this year?

Probably coming down to what the fed has done.

This text has been automatically generated. It may not be 100% accurate.


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