By Francis Chua
Adding multi-faceted, flexible fixed income sectors into the bond portion of a multi-asset portfolio could boost diversification.
In the ever-evolving landscape of investing, the traditional 60/40 portfolio has long been hailed as a beacon of diversification. But as markets continue to shift and new opportunities arise, it’s becoming increasingly evident that a one-size-fits-all approach may not suffice. We believe it’s time for investors to rethink their diversification strategies.
Let’s explore why the conventional wisdom surrounding the 60/40 portfolio may no longer hold water in today’s market environment.
Bonds go back to the future
We’ll begin with government bonds, a common allocation in many multi-asset portfolios, including the 60/40 portfolio.
