One hundred million users in the US, a market size of almost $70 billion, and growth rates ranging from 4.8% to almost 10% – these sound like the descriptive statistics of a thriving and successful industry[i]. Perhaps, but consider that the underlying problem this industry is trying to solve is getting worse, not better. I’m… Read more »
Tag: 60/40 problem
Goldman’s Warning & Blueprint’s Answer
Goldman Sounds A Warning This seldom happens: Equities, bonds, and credit being similarly expensive at the same time. “A condition that is going to translate into pain for investors”. (Full Article Here) Major drawdowns in 60/40 portfolios averaged 26% in real terms, lasted about 19 months, and took almost two years to return to previous peaks…. Read more »
60/40, Landlines, and 8-tracks
The investment industry is facing a “60/40 problem”. Over the past several decades, advisors have leaned on the 60/40 portfolio to deliver a less-volatile, but still relatively reliable return for balanced investors due to their lack of tolerance for the volatility and drawdowns of a pure equity allocation. While the addition of bonds to an… Read more »