What the 60/40 Portfolio Debate Is Missing
April 12, 2021 by John Ruth
There’s been a lot of commentary recently about the time-honored 60/40 portfolio being ripe for a rethink. We couldn’t agree more. But we believe that the conversations, and particularly the solutions being suggested, are headed in entirely the wrong direction. On top of that, nobody seems to be asking if these proposals are serving clients well.
While we agree that low rates are likely here for a while and that they put new strains and new risks on the fixed income side of allocation models, the question we are asking is: What should be done to evolve the portfolio for this new zero interest rate policy world?