JPMorgan Asset Says 60/40 Rethink Needs Alternative Investments
- Firm says nontraditional assets, strategies will be essential
- Recommendation comes amid ongoing debate over 60/40 strategy
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Alternative investments such as hedge funds will become essential parts of post-pandemic portfolios due to low interest rates and fewer opportunities for diversification, according to JPMorgan Asset Management.
The fund giant said nontraditional investing can span private equity, alternative credit, real estate and infrastructure, as well as adopting strategies like short selling and leverage. Such approaches will evolve from optional to indispensable over the next 10 to 15 years, the firm said in its annual Long-Term Capital Market Assumptions report.