Episode summary
Wealth Management Invest: Opportunities Beyond Large Cap Stocks with BNY’s Alicia Levine
Summary
Alicia Levine said BNY Wealth sees the market’s resilience as being driven by earnings rather than just multiple expansion. She pointed to second-quarter results showing earnings growth of 30% year over year, or 50% after adjusting for private-tech investments by some hyperscalers, and said the S&P 500 is now trading at about 20 times earnings versus 22 times at the start of the year. In her view, the real story is broadening participation: small caps, emerging markets, and developed international equities are all showing improving earnings, not just large-cap technology.
She argued that portfolios should be built for a world where the long end of the bond market may not offset equity risk as well as it once did. BNY Wealth prefers shorter-duration fixed income, expects no Fed hike in September, and sees inflation staying above 3% because of AI investment, tariffs, reshoring, and geopolitical conflict. That view leads the firm to favor real assets, energy exposure, and about 20% in alternatives in model portfolios, alongside 20% to 25% in fixed income and roughly 55% to 60% in equities.
Levine also said private credit should be viewed more carefully by vintage and structure, not as a monolithic category. She prefers newer vintages and structures that better match underlying asset lives, and said BNY Wealth generally wants at least a three-year track record for new active products. On taxes, she emphasized capital gains budgets, tax-managed equity and fixed income, and a cautious approach to making portfolio changes without forcing unnecessary tax events.
Key takeaways
- Alicia Levine said earnings growth is broadening beyond large-cap tech, with small caps, emerging markets, and developed international all showing strength.
- She said BNY Wealth prefers short-end fixed income because the long end of the curve may not protect equity portfolios as well right now.
- Levine said her firm typically recommends about 20% in alternatives, 20% to 25% in fixed income, and 55% to 60% in equities in model portfolios.
- She said newer private credit vintages and fund structures look more attractive than older direct-lending vintages created in a zero-rate world.
- Levine said BNY Wealth generally wants a three-year track record and operational due diligence before recommending a new active fund.
- She said investors should manage portfolio changes against a capital gains budget and consider tax-managed strategies to reduce taxable friction.
Notable quotes
“earnings growth is 30% year-over-year which is quite extraordinary”
“the market is actually cheaper today than it was in January because it's only trading at 20 times earnings”
“what you're seeing really is a broadening out of the market”
“we like real assets here and you're going to be exposed to that in different ways”
“wealth is built over years and decades. And the power of compounding is magical”
How the episode opens
Fixed income investors face a changing landscape. That's why Voya Investment Management is focused on helping advisers understand what's shaping fixed income today and what may come next. Explore fixed income solutions, insights, and expertise built for what's next at voyavestments.com.
Hello and welcome back to the Wealthmanagement Invest podcast. I'm David Bodimemer, editorial director with Wealth Management. And for this episode, I'm excited to bring on Alicia Lavine, who is the chief investment officer at BNY Wealth.
Alicia, welcome to the podcast.
Hi, David. Thanks for having me.
So, before we dive into it, I have some questions. I want to pick your brain a bit about markets and guidance and what you're talking about with what BNY Wealth is talking about with its Fisers and clients. But just wanted to give you a chance first to introduce yourself.
I know that you've been with BNY for a bit. More recently, took on the mantle of chief investment officer, but if you could just talk a bit about your background and where you sit within the organization.
Okay, that's great. So, look, I've been in the finance and asset management business for over 20 years. I've been in wealth management for about five most of my roles have been investment related.
So I was chief investment strategist on the asset management side of the bank and I came to wealth as head of equities and head of capital markets moved into head of investment strategy and now I'm chief investment officer. So I come to this with an investment bank background and just a way of looking at markets which is pretty much ingrained in me at this point. And could you talk a bit about BNY Wealth and what that organization entails?
This is actually a really great organization.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- equity concentration risk
- small cap investing
- international equities
- private credit due diligence
- tax-managed portfolio changes
Companies and tickers mentioned
- BNY Wealth
- BNY
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from WealthManagement.com
-
The WealthStack Podcast: AI, Video and the New Rules of Client Engagement with David Moricca -
401(k) Real Talk Episode 216: November 11, 2026 -
The Planning Opportunities Hidden in High-Net-Worth Conversations -
Wealth Management Invest: Expanding Access to Private Markets with Blackstone’s Farhad Karim -
401(k) Real Talk Episode 215: November 4, 2026 -
How Advisors Can Use AI Without Losing the Human Relationship with Rron Rexha
WealthManagement.com, this episode and its artwork belong to their owners. Octagon is not affiliated with the show; this page is an independent summary.
