How much of my portfolio is exposed to corporate credit investment products?
Since the credit environment is improving, should that allocation be
increased?
Emerging market investments performed well last year but some now worry the
market is headed for a crash. The Institute of International Finance, an
international banking association, warned in January that the markets may be
moving ahead of their fundamentals—as they often do before a severe correction,
as in the 1994-95 Tequila Crisis, the 1997 Asian Financial Crisis and the 1998
Russian debt default. How should I manage the risk of my emerging markets
portfolio? Can there be any justification for buying the debt of countries such
as, for example, Venezuela?
The initial public offering market is seeing a welcome flow of deals, most of
which are performing well in the secondary market. How should this affect my
equity strategy? Is it time to devote more risk capital to IPOs?
The IPO Renaissance is providing a welcome exit mechanism for private equity
and venture capital funds. My extant investments in these vehicles may finally
begin paying off. How should this affect my private equity portfolio
allocation?
Meanwhile, the continuing growth of the U.S. economy and better valuations
for small and medium-sized businesses are opening new investment opportunities
for private equity funds. What does this mean for the capital I committed to
limited partnerships, but which was never called due to the market downturn of
2000 to 2002? Is there any chance I will be subject to capital calls now?
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