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JPMorgan Asset Cuts 60/40 Outlook, Backs Hunt for Alternatives

  • Popular balanced strategies hampered by negative bond returns
  • Alternative assets may help solve dilemma of classic hedging

JPMorgan Asset Management is cutting its projections for cross-asset returns over the next decade and signaling more pain for 60/40 allocations that have long formed the bedrock of traditional portfolios.

Such a balanced approach will earn 4.2%, down from 5.4%, in coming years, according to the $2.3 trillion fund manager in a Thursday presentation.