Applying Alternatives: The new essential for traditional portfolios
Investor Education
Looking back, the past 35 years have generally been a good ride for investors holding traditional portfolios of 60% global stocks and 40% bonds, known as the 60/40 portfolio. Historically, these two asset classes have been a lucrative combination providing enough diversification to weather volatility.
However, that diversification benefit has eroded in recent years due to economic factors, such as inflation, which seems to have caused stocks and bonds to behave similarly. As these two asset classes become increasingly correlated in today’s markets, a traditional portfolio’s diversification diminishes, potentially leaving you open to increased risk and reduced risk-adjusted returns.
In today’s market environment, you may be looking for strategies to increase diversification, mitigate risk or increase returns to help your portfolio thrive.
Alternative investments may be the solution you are looking for.
In this article, we’ll explore the What, Why and How of alternative investments…
This material has been published by Picton Mahoney Asset Management (“PMAM”) on August 27, 2024
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