Let’s Talk About Private Markets


2021 is over, and investors who were willing to keep some risk in their portfolios benefited from a raging stock market. Global equity indexes were up well into the double digit percent range, while fixed income indexes struggled just to keep from losing. The sum of governmental policies around the world massively increased the money supply and drove up asset prices for risky assets, just as we predicted.

Before the past year even started, we developed five key themes that we have been reviewing during each of the 2021 Quarterly Market Reports:

  • Fixed Income (in the public markets) will suffer from inflation and low yields
  • The Stock Market will go up
  • Extreme Volatility could erupt at any time
  • Tax Rates will go up
  • Private Market Investments can benefit your portfolio

Not all of these have materialized just yet. For instance, we haven’t had volatility that we would describe as “extreme,” although we still think that’s coming. But the other themes have been good guidelines for investing. And even though tax rates have not gone up in the way we predicted, a little noticed change to the code from a few years ago does keep the tax brackets from keeping up with common measures of inflation.

In our Annual Market Report we will summarize the public market’s performance in the context of these five themes. We will also share with you our growing pessimism for how public markets will perform in 2022. And we will turn our attention to the final theme: how private market investments can benefit your portfolio.

Many of our longtime clients have enjoyed investing in this asset class, and 2022 holds the promise of some big developments and even more choices. Investors will be eager to take a look at their Quarterly Portfolio Reports that show just how well Private Equity and Private Fixed Income have performed in the last year.

This is Eric Cramer, Chief Investment Officer for BIP Wealth. Check out the video above from our 2021 Annual Market Report as we cover the markets and share why we think private market investing may be so important in the future.


Disclosure: This communication contains general investing information that is not suitable for everyone and is subject to change without notice. Past performance is no guarantee of future results and there is no guarantee that any views and opinions expressed will come to pass. The information contained herein should not be construed as personalized investment advice, tax advice, or financial planning advice, and should not be considered a solicitation to buy or sell any security. Investing in the stock market and the bond market involves gains and losses and may not be suitable for all investors.