Despite losses in 2022, the 60/40 portfolio has been doing exactly what it’s supposed to do—delivering respectable returns on average over the medium- to long-term with moderate volatility, says Aliaga-Díaz. Far from being left for dead, the 60/40 still serves as the foundation for balanced investing.
It’s a foundation that has room for customization to accommodate personalized needs and the evolving understanding of the drivers of risk premiums for traditional and alternative asset classes. Modern technology, in turn, allows personal customization at an economically feasible scale.
To read more of what Aliaga-Díaz has to say, see the InvestmentNews article.