Just finished lunch at the Four Seasons Hotel, Mayfair. An investment seminar for 'exclusive' Family Offices. By 'exclusive', these guys represent billionaires. Definitely a different world! There was even wine for lunch (now unheard of in the parched and crisis ridden City of London)!
Saw a fascinating presentation by a 'very' famous family office from the US. Chatam House rules apply so we can't mention names. These people are very secretive!
Turns out attention over in the US is turning our way, that is on the asset allocation front. Some interesting statistics where thrown around to justify this.. 20 years ago, 70% of the global market was in the US. Today, that number is 40%. For example, 30 years ago half of the worldwide market capitalisation of the auto industry was outside the US. Today, its 90%. Anyway, the good news is that its not just Emerging Markets - Everyone wants to talk about Frontier markets.
Another interesting take. Average cash positions of these family offices currently ranges from between 20% and 50%. The mood is very negative.