This Asset Manager Offers A Solution For When The 60/40 Portfolio Fails

Over the decades, one bit of financial advice that has stood the test of time has been to allocate 60% of a portfolio to equities and the other 40% to bonds. However, investors who followed that advice in 2022 lost a lot of money.

In fact, Bank of America
BAC
said in October that investors who allocated to a traditional 60/40 portfolio were down 34% for the year — the worst performance for the traditional portfolio in a century. Typically, stocks and bonds are negatively correlated, but in 2022, everything plunged in tandem.