The traditional 60/40 balanced portfolio is no stranger to coming under fire. Many pundits have decreed the death of the balanced portfolio, arguing that a low yield environment will prove insurmountable and bonds will no longer be able to provide necessary diversification for investor portfolios. This proclamation has yet to be proven correct, and in the investment management industry, being too early is the same thing as being wrong. That being said, is this time different?
Tag: Equity
Buyer Beware
One unintended consequence of COVID-19’s impact on financial markets has been the influx of new retail investors. Online brokerages, such as Robinhood, provide a platform where almost anyone can deploy capital into public markets, regardless of their experience or financial means. While the goal of platforms like Robinhood is to “democratize” investing, the ease of…
Why Bonds Should Be a Staple, No Matter Your Portfolio
With the recent volatility in financial markets, some investors are finally seeing the diversification benefit of holding fixed income in their portfolios alongside their riskier equity investments. In the current bull market – the longest one in history – it is easy to look at the allocation to bonds as nothing more than a drag…