How to Build a Global Investment Portfolio for the Next Decade

Passive multi-asset portfolios based on benchmarks have seldom been optimal and may miss out on opportunities in smaller or alternative assets, Goldman Sachs Research finds. Current benchmarks are also dominated by US assets, and investors need to manage foreign exchange risk more actively—investments in emerging market assets, gold, or the Swiss franc may reduce the risk to portfolios from a weakening US dollar. Private markets have grown significantly and may allow investors to enhance returns with less volatility by actively managing the underlying assets.