Beyond 60/40: The Case for Liquid, Systematic Diversification

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Beyond 60/40: The Case for Liquid, Systematic Diversification

hedgenordic

1 week ago

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By Bjarne Graven Larsen: For decades during the great moderation, the 60/40 portfolio was the institutional investor’s Swiss army knife. Equities grew wealth; bonds benefitted from the secular deline in rates and cushioned the blows. The two assets moved in opposite directions when it mattered most. Investors slept soundly.

That sleep has become more restless.

When the Safety Net Frays

Since approximately 2021, the reliable negative correlation between equities and government bonds has...

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