Equity Valuations, Volatility, and Private Markets Drive Conversations: Blackstone
Financial advisors are focused on elevated equity valuations and market volatility, while increasingly turning to private markets to enhance diversification and long-term growth, according to Blackstone Private Wealth’s quarterly ‘Advisor Pulse’ – Winter 2025 survey of more than 180 financial advisors within the firm’s global network.
The survey highlights that within client portfolios, advisors cite high equity valuations (40%) and public market volatility (32%) as top concerns while inflation and (3%) interest rate volatility (2%) are notably less of a concern. At the same time, clients are prioritizing long-term capital appreciation (38%) and enhanced diversification (36%), while capital preservation (12%) and enhanced income (8%) are less of a worry, prompting advisors to reassess traditional public market exposures.
Private markets are expected to see the largest increase in allocations this year (74%). According to the report, surveyed advisors believe private market strategies will receive the most incremental capital compared to other asset classes (public equities 14%, public fixed income 5%). The findings suggest a structural shift rather than a tactical move, with private markets increasingly viewed as a core allocation.
Within alternatives, private real estate stands out. More than half (61%) of surveyed advisors believe private real estate is currently attractive relative to public real estate and other asset classes, reflecting ongoing interest in income generation, inflation mitigation and portfolio diversification. Only 17% view private real estate as less attractive.
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