Byron Wien, Blackstone's vice chairman, last week outlined his 2014 asset allocation recommendations for institutional investors, split into two categories – long only and alternatives.

Mr. Wien says he believes there is further upside ahead in U.S. equities despite his belief that a correction “could occur at any time.” His current portfolio is positioned with the view that world growth might be “below expectations in contrast to the widespread forecasts of a significant pickup in economic activity.” He sees modest earnings ahead and doubts the likelihood of more double-digit increases in market indexes.

On the long-only side, his allocation is spread evenly (10% each) to high-quality global multinationals, U.S. small- and midcaps, European equities and emerging markets. He also has a 5% allocation to Japanese equities.

On the alternatives side, a 15% allocation to high-yield securities is followed by 10% allocations to hedge funds, private equity, real estate and commodities (5% gold and 5% natural resources).