Inflation and higher interest rates have stressed it.However,"the 60/40 portfolio certainly isn't dead," Holly Newman Kroft, managing director and senior wealth advisor at asset manager Neuberger Berman, said Thursday at the semiannual CNBC Financial Advisor Summit.The strategy allocates 60% to stocks and 40% to bonds — a traditional portfolio that carries a moderate level of risk.
Investors got higher returns than those with more complex strategies during every trailing three-year period from mid-2009 to December 2021, according to anInflation spiked in 2022, peaking at a rate unseen in four decades. The U.S. Federal Reserve raised interest rates aggressively in response, which
That said, investors also benefit from higher interest rates, since they can"access safer asset classes at a higher yield," Kroft said. For example, banks are paying 5% to 5.5% onThe Fed's"higher for longer" mentality means bonds should have these equity-like returns for a longer period, Kroft said. Within the alts category, high-net-worth investors can access certain things like private equity and private credit, Kroft said. The typical investor can gain alts access through more liquid funds — like a mutual fund or exchange-traded fund — that focuses on alts, or via funds geared toward commodities, she added.
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