Does the 60/40 rule need revising given the surge in alts?
January 25, 2023 | Bruce Kelly | Investment News
At a panel at FSI OneVoice, one speaker suggested the revised math for portfolios could wind up in the neighborhood of 55% stocks, 35% bonds and 10% alternative investments.
The recent surge in sales of alternative investment like nontraded real estate investment trusts and business development companies, as well as the rough market for stocks and bonds in 2022, indicate some financial advisors may be ready to reconsider one of the most sacred cows of the investing industry, the classic portfolio model of 60% stocks and 40% bonds, according to a panel discussion on alternative investments at Financial Services Institute’s annual OneVoice meeting in Palm Desert, California.
The revised math for portfolios could eventually wind up in the neighborhood of 55% stocks, 35% bonds and 10% alternative investments, said Michael Alexander, president of Broadridge Wealth Management and Global Managed Services, speaking Tuesday on a panel titled “Alternative Investments: Not So Alternative Anymore.”