JPMorgan Asset Management Bets on Left-for-Dead 60/40 Strategy
- JPMAM sees 7.2% long-term annual return for classic portfolio
- Higher yields, cheap stocks offer best entry point since 2010
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Battered 60/40 portfolios will roar back to life and provide investors with solid returns after the worst performance in nearly 15 years, according to J.P. Morgan Asset Management.
The asset manager said the classic strategy, which allocates 60% to equities and 40% to fixed income, will provide an average annualized return of 7.2% over the next 10 to 15 years starting next year, after a 19% drawdown this year. That compares with a 4.3% long-term return projected from 2022.