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Alternatives to the 60/40 Stock/Bond Portfolio

Alternatives to the 60/40 Stock/Bond Portfolio

Aired On

Jun / 07 / 2022
12:00 pm - EDT
Justin Carbonneau
Validea Capital Management

The 60/40 stock and bond portfolio has been a successful investment strategy for the last 40 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 the risk for investors.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 and Protective Asset Allocation can offer more broad protection against future uncertainty.
Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Validea Capital Management and is being posted with its permission. The views expressed in this material are solely those of the author and/or Validea Capital Management and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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