Press Room

Los Angeles Times: Todd Morgan was quoted in the article, “How to invest for the Age of Trump”

“How to invest for the Age of Trump,” by Tom Petruno, Los Angeles Times.

“People don’t realize the damage that bonds can cause” as market rates rise, said Todd Morgan, chairman of Bel Air Investment Advisors. For uninformed investors, “it’s what is going to cause the most pain” if the economy accelerates, he said.

To limit potential bond losses, Bel Air is keeping clients’ bond holdings mostly in issues that mature within 2.5 years, Morgan said. Shorter-term bonds decline less than longer-term issues when interest rates rise.

Morgan said Bel Air over the last year has raised stocks from 30% to 40% of total assets in one of its benchmark portfolios, with 25% in bonds and 35% spread across a variety of other investments.

But he said he still finds many people prefer to keep “too much in cash and too much in bonds.” That may change if investors see Trump’s pro-growth policies such as tax cuts, infrastructure spending and deregulation take root, Morgan said.

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