Chanticleer

How to set up your portfolio for the next decade, according to Goldman

The traditional 60/40 portfolio has rallied off its deathbed thanks to surging stocks and bond yields. But Goldman Sachs says what comes next might look very different.

Updated May 29, 2024 – 1.56pm, first published at 11.04am

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Reports of the death of the traditional 60:40 portfolio (60 per cent equities, 40 per cent bonds) in 2022 proved premature, with falling inflation, hopes of central bank rate cuts and the AI-powered rally in global equities leading to an impressive recovery just a year later.

But 60:40 believers now face a new challenge, according to a Goldman Sachs team led by Christian Mueller-Glissmann: equity valuations look rich, especially in the US, and bond yields have also risen, albeit back towards long-run averages.