The 60/40 portfolio isn’t dead, but is it evolving, and will look different in the future, according to GSFM investment strategist Stephen Miller
He says it is time to consider a 50/20/30 portfolio, diversified between listed equities/bonds / and ’other’ assets, with the ‘other’ including private substitutes for publicly listed equities and publicly traded bonds; namely, private equity and private credit.
“Those private assets after all, make up increasing proportions of the overall investible pool,” he says.
“The ‘other’ should also include assets ideally uncorrelated with equity and bond returns. This might include precious metals (perhaps a better safe harbour than bonds in the emerging investment environment – a notion given expression by the appreciation in the gold price), liquid alternatives, long/ short strategies in equities and bonds, and macro and quant hedge fund strategies, to name a few.
