Nick Millikan in this fastchat video, CFA, CAIA, Head of Investment Strategy, CAIS, WealthManagement.com, with editor, David Armstrong, dives deeper into CAIS reimagining the 60/40 portfolio.
Watch as they discuss:
- CAIS believes that a future low return environment, coupled with less diversification benefits from bonds in a rising rate environment, presents an opportunity for investors to re-imagine a 60/40 portfolio. how so?
- Therefore, investors should look for wider opportunities such as alternative investments and private markets to increase returns and diversify risk. How can private equity help balance portfolio risks in the current environment?
- Does the floating rate structure typically associated with private loans provide an alternative opportunity given the outlook for higher rates?
- Why are other alternative investments such as hedge funds now attractive to investors looking for opportunities to reduce volatility and offset broader market risks?