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.
Key Points
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.
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