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The 60-40 portfolio won’t protect investors anymore

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Institutional Investor/Hannah Zhang/12-16-2021

graphic of a satisfied investor sitting atop a pile of gold bars“The stable inflation of the last decade is unlikely to repeat itself in the 2020s, which could very well undermine the diversification benefits of the traditional 60/40 portfolio.”

USAGOLD note: AQR Capital Management says gold, commodities, and “inflation breakevens” can provide investors with the best inflation hedges, and warned investors to be “especially wary of equity risk.” The article linked above provides interesting detail …… Given the readership of Institutional Investor

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