Some Quantitative Alternatives to the 60-40 Portfolio
Excess ReturnsJune 21, 202100:21:44

Some Quantitative Alternatives to the 60-40 Portfolio

In a world where inflation is not a threat, a standard 60-40 portfolio does an excellent job of providing growth, while also limiting downside when stocks get choppy. You don’t need anything more than the last 40 years, when the 60-40 portfolio had its best stretch ever, to illustrate that. The 60/40 has produced a 9.2% annualized return going back to 1988 – that is an impressive return for a portfolio that buys the overall market and aggregate bond index, rebalances once a year and calls it a day.

But with inflation potentially on the horizon, some argue that the 60-40 may not be enough anymore. In this episode, we look at some quantitative strategies that can offer alternatives to the 60-40 portfolio and discuss their pros and cons.

We hope you enjoy the discussion.

Jack's Article:
https://blog.validea.com/quantitative-asset-allocation-approaches-that-go-beyond-stocks-and-bonds/

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https://www.validea.com/generalized-protective-momentum-portfolio

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