Discover the full article in Advisor Hub by clicking on this link:
Summary: The 60/40 portfolio traditionally consists of 60% equities and 40% bonds and remains a popular allocation strategy for investors. It aims to balance higher-growth equities and lower-risk bonds, offering some protection during market downturns. Recent declines in both equities and bonds challenge the effectiveness of this allocation because portfolio models – like the 60/40 allocation – assume that asset classes remain uncorrelated.
C8’s CEO, Mattias Eriksson, proposes an alternative to this traditional equity-bond mix that results in better and more robust investment outcomes. It is achieved through a combination of adding uncorrelated alternative constituents and using modern portfolio construction methods.
Is the 60-40 Split Dead? (Advisor Hub)
Published: September 29, 2023