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Alternatives to the 60-40 Stock-Bond Portfolio: Why Investors Should be Thinking About This Now in Today's Market

Released on Wednesday, January 26, 2022•STRATEGIES

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The 60/40 stock and bond portfolio has been a winning investment strategy for the last 30+ years for those investors looking to balance risk and return. As a result, it has become the dominant asset allocation for most investors in or nearing retirement.

However, high stock valuations and low bond yields may be headwinds for the 60/40 over the next decade, and lower expected returns from the portfolio could pose significant problems for investors. Potential future inflation could also cause a situation where both stocks and bonds decline at the same time, increasing risk for investors.

In this presentation, Validea Capital's Justin Carbonneau will look at the pluses and minuses of the 60/40 from this point forward and what some of the challenges may be for investors who have this traditional asset allocation.

In this webinar, you will learn:

Why the future returns of the 60/40 portfolio may be lower than they have been in the past;

How additional asset classes such as commodities, gold and real estate can work as complements to a stock and bond portfolio;

How unconventional asset allocation strategies such as the Permanent Portfolio, All Weather Portfolio, Protective Asset Allocation and Generalized Protective Momentum can offer more broad protection against future uncertainty and how they can be combined into one strategy with superior risk adjusted returns.

Justin Carbonneau

VALIDEA, Vice President

Justin Carbonneau is vice president of Validea, an independent investment research firm focused on developing quantitative strategies and investing tools based on the methodologies of legendary investors and other proven approaches. He is also one of the partners at Validea Capital Management. Mr. Carbonneau writes the "Factor Focus" column on Validea and is co-host of the Excess Returns investing podcast. He was on UConn's Track & Field team, is a former member of the Connecticut Air National Guard, and holds a MBA from the University of Connecticut.