Ken Griffin at Delivering Alpha

As far as the Mount Rushmore of great investors, Ken Griffin probably has to be on the list. Head to the video below around the 2:10 mark, when Griffin is asked about today's environment.

"Here's the problem with economics. There is no answer. There's just distributions. There's just what may happen. And of course, there's some distribution that says we're going to go into a significant recession or depression. I can give you that story, I can give you that bearish story. I'm not sure it serves much purpose. I want you to always think about that in terms of their portfolio allocation; can I endure the losses in my portfolio that would go with a severe recession or depression. I should be aware of that possibility. But you want to think about managing your portfolio over your life and over your ability to sustain your risk positions over the journey of your life. In other words, you don't want to own so many equities, that when the inevitable recession happens you're forced to sell at the bottom. That's a much more important concept for investors to understand and to focus on instead of trying to prognosticate as to when the next recession's going to happen."

Also notable were Griffin's comments on the improved prospects for the 60/40 portfolio, as compared to any point in recent years. With bond yields up and stock valuations down, future return projections are pointing higher. As is always the case, if you can endure the to be expected portfolio drawdowns, there's usually substantial light on the other side.

^{Source: Citadel’s Ken Griffin says Fed must continue fight to reset inflation expectations}

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