Professional Adviser Working Lunch with Orbis
15th October 2020 | 13:00-14:00 | Online
Is “60/40” set up for a massive failure?
The only certainties in life, so the cliché goes, are death and taxes. But, for the past 40 years or so, financial markets would have probably added a third - the likely success of a 60/40 balanced portfolio. In recent years, however, the case against this sort of allocation strategy has been building.
As bond yields have fathomed ever lower depths it has become increasingly hard to expect either income or protection from bonds. That’s not to say that the industry should discard everything it once held dear, but rather that, if we are to succeed in the long term we need to ask the hard questions, like why in the midst of a global pandemic, is the market still hitting all-time highs? And what does the classic “60/40” look like for investors in future?