Portfolio 60/40

22.03.2021, 08:06

Over the years, investors have stacked up their 60/40 portfolio. This model has always won. 60 percent of the portfolio is allocated to risky stocks. 40 on a safe fixed income. The early 40s were always bonds. But now the clouds were gathering over them. Investors are looking for an alternative. Analysts at major funds warn that it will be increasingly difficult to profit from bonds. The beginning of 2021 is the worst in the last 10 years.

Also, hedge funds predict that the 60/40 strategy will bring in just 1.4%.

Many investors have turned to gold. Since it is associated with inflation and is more protected from risks. Yes, gold provides an opportunity to stay away from risky markets. As a protection against market shocks, gold can come in handy.

We are also seeing many investors starting to add bitcoin to their portfolio at the end of 2020. According to Goldman Sachs Group Inc. 40% of his clients are related to cryptocurrencies. If the client's portfolio is properly managed, that is, portfolio managers must withstand the volatility of Bitcoin, then it can become a haven against downturns in the stock market.

So Morgan Stanley will offer its clients, subject to certain conditions, to add 2.5% in bitcoin to their portfolio.

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