How to Build Resilient Portfolios

  • The traditional 60/40 balanced portfolio is under attack. Nonetheless, it remains attractive moving forward, especially if enhanced.
  • The 60/40 should be enhanced because there has been a sea change in the markets.
  • The sea change: Interest rates have normalized. Less globalization, higher inflation, and more volatility all suggest higher rates.
  • Diversifying portfolios by asset classes makes as much sense as ever. Diversifying by investment strategies also builds resilient portfolios.

 

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